China started testing the Digital Yuan in late 2019 and started offering it as a form of travel subsidy to the government employees and later moved to airdrops via a lottery system.
China is currently at the forefront of the CBDC game as the rest of the world is either at the planning or development stage. People’s Bank 3of China, the central bank started the development of the country’s central bank-issued digital currency in 2014. At present, the digital yuan is in the second year of testing across multiple cities and provinces in China.
G7 Nations Discuss CBDC Plans
China’s major lead in CBDC development and issuance has caused a sense of urgency among several European and American countries. The US is already treating the potential impact of digital yuan in the international trade market as a threat to its financial sovereignty. Many other countries have accelerated their CBDC plans looking at the progress of China.
The finance ministers and Central Bank officials of G7 nations came together for discussions around various financial regulations including universal taxation of 15% for the rich, as well as discussions around CBDCs and stablecoin development. The group published a set of design preferences for CBDCs.