China’s blockchain industry doesn’t stop, even during China’s week-long National Day holiday. A public test for the digital yuan was announced in Shenzhen, over-the-counter (OTC) traders are facing increasing pressure, and two reports shed some light on the numbers behind China’s vast blockchain industry.
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The world of blockchain moves fast, and nowhere does it move faster than China. Here’s what you need to know about China’s block-world in the weeks of Sept. 28 – Oct. 12.
The digital yuan
- Shenzhen launched the first public test for the central bank digital currency, which will distribute RMB 100 million (about $1.48 million) through red envelopes. A lottery system will randomly select 50,000 individuals who will receive virtual red envelopes with RMB 200 worth of the digital yuan. Residents of the Luohu district can apply through China’s big four banks and those selected will be able to use the coupons at 3,389 retail outlets around the city. Applications were due by Monday, and the distribution will take place on Friday. (Reuters)
- The People’s Bank of China has processed RMB 1.1 billion in upwards of 3 million individual transactions using the digital yuan, the bank’s deputy governor Fan Yifei said on Oct. 6. More than 120,000 digital wallets have been opened, 92% of which are personal wallets while the rest are corporate, he said. The bank has tested 6,700 use cases, according to Fan. (Fintech Futures)
- On Monday, another central bank deputy governor called for further acceleration of the digital yuan’s rollout. (South China Morning Post)
READ MORE: INSIGHTS | China’s digital currency has a long way to go
The OTC crackdown
- Chen Lei, the former CEO of Xunlei, China’s largest download software, has been accused of embezzling company funds to trade in crypto and is currently under investigation by authorities. (Sina Finance)
- The State Council said on Sunday that it will crack down on phone and bank cards that are used for illegal activities, and China’s crypto traders fear that they could have their bank cards frozen. OTC traders have recently reported that their bank cards have been frozen for five years. (Wublockchain)
The numbers
- A report by international consulting firm PWC said that China stands to gain the most from blockchain adoption. Blockchain technology could add $440 billion to its gross domestic product by 2030, compared with $407 billion net benefit in the US, the report said. (PWC report)
- A recent report based on data collected in October said China’s blockchain industry is dominated by small- and medium-sized enterprises. Companies with registered capital under RMB 5,000 account for 46% of China’s blockchain companies, a report by blockchain data platform Longhash said. Only 9% of all companies have over RMB 50,000 in registered capital, according to the report. (Longhash)