Digital yuan trials included in 5-year modernization plan for Shanghai district

Authorities in China have announced a five-year modernization plan for Shanghai’s Pudong New Area, which will include trials of the digital yuan. The plan, developed by the Chinese Communist Party Central Committee and the General Office of the State Council, aims to establish a new commercial hub and implement digital yuan experiments. The blueprint includes objectives such as improving market access, developing efficient customs clearance mechanisms, and enhancing the cargo hub functionality of the Shanghai Pudong International Airport. Additionally, plans are underway to create a digital trade service platform and a blockchain-based digital identity certification platform. The plan also focuses on deepening the region’s talent pool by attracting foreign experts through incentives like permanent residency, research grants, and seamless work permits. The report also highlights the intention to support new central bank digital currency (CBDC) experiments, where the digital yuan will be utilized in various sectors such as e-commerce payment, green power trading, carbon trading, and cross-border trade settlement. China’s digital yuan pilot program has already expanded to retail, transport, hospitality, and securities industries, and the People’s Bank of China (PBoC) is exploring additional functionalities such as offline payments, a red envelope feature, and NFC capabilities.