A number of Chinese cities are planning to prop up trial operation of China's sovereign digital currency - Digital Currency Electronic Payment (DCEP) - in their tone-setting government work plans for 2021, which observers say mark a positive start for a year that could pave the way for the currency's official launch.

 Beijing's mayor Chen Jining said on Sunday that the capital will accelerate the building of innovative demonstration zones for fintech and professional services in 2021, and will promote the pilot application of the digital currency.

Shanghai's mayor Gong Zheng said on Sunday when delivering a government work report that they will continue the financial opening-up and the promotion of the digital currency.

Ma Xingrui, governor of Guangdong, also vowed on Sunday during the opening ceremony of the local "two sessions" that authorities will support the development of Shenzhen into an innovative pilot zone for the country's digital currency.

Shenzhen, dubbed as China's Silicon Valley, has launched a third round of digital currency pilot testing since January 20, issuing 20 million digital yuan to residents in Longhua District.

Industry observers say that the plans by China's first-tier cities send a clear signal that DCEP will embark on large-scale testing this year against the backdrop of a global race, which will lay a solid foundation for its launch in the near future.

In 2020, the trial operation of DCEP expanded from small-scale closed-loop testing to large-scale open testing.

The tests were carried out in a handful of cities including Shenzhen, Shanghai, Suzhou in East China's Jiangsu Province, Chengdu, capital of Southwest China's Sichuan Province, and Xiongan New Area, North China's Hebei Province.

Source :globaltimes