Shenzhen's New Focus on Digital Currency Research

The Shenzhen Special Economic Zone is set to broaden its scope by including digital currency research, as reported by China's state media, Xinhua. The announcement states: "The Central Committee of the Communist Party of China and the State Council will support Shenzhen in establishing a pilot demonstration zone for socialism with Chinese characteristics. This includes backing innovative applications like digital currency research and mobile payments in Shenzhen." While the guideline is issued by the State Council, specifics on the types of digital currency research to be conducted by local government remain unclear. This development follows the Chinese government’s recent announcement that its central bank digital currency, which has been under development for five years, is nearing its release. At the same time, China maintains its ban on the listing or trading of any digital currencies, including bitcoin.