CHINA'S INITIATIVE TO REPLACE PAPER MONEY WITH DIGITAL CURRENCY

China will begin trial payments in its new digital currency in four major cities from next week, according to foreign media. In recent months, China’s central bank has stepped up its development of the e-RMB, which is set to be the first digital currency operated by a major economy. It has reportedly begun trials in several cities, including Shenzhen, Suzhou, Chengdu, as well as a new area south of Beijing, Xiong’an, and areas that will host some of the events for the 2022 Beijing Winter Olympics. China had been formally adopted into the cities’ monetary systems, with some government employees and public servants to receive their salaries in the digital currency from May. A decline in cash usage is expected to continue amid the growing popularity of digital payment platforms and as people avoid physical contact during the Coronavirus pandemic.