Chinese news outlets have reported that the digital yuan app no longer carries the ‘pilot’ label. It dismissed the reason as an administrative one, saying the pilot mode persists. However, even if the digital renminbi is still in pilot mode, we believe this may indicate the central bank digital currency (CBDC) might be nearing the end of its pilot phase and starting preparation for production.
The reason for dropping the ‘Pilot’ description relates to rules requiring Chinese apps to register with the local provincial communications department. The registration name has to be consistent with the name the app, in the App Store and on the face of the phone. However, we’d observe that it would be feasible to append ‘Pilot’ in all these places if the plan was to continue the Pilot for a year or so. Bear in mind that the Pilot commenced in 2020, so it is currently in its fifth year.
The decision to drop the ‘Pilot’ term everywhere may indicate that the period is drawing to a close. The central bank may want to launch the CBDC for several reasons.
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