According to an article in the Futurism, "China’s central bank — the People’s Bank of China — has developed a prototype of a cryptocurrency that it could end up in circulation in the near future. It would be introduced alongside the China’s primary currency the renminbi (also called the yuan). China will be simulating possible scenarios and running mock transactions using the cryptocurrency with some commercial Chinese banks."
"Cutting costs is an obvious benefit, but the impact of shifting to blockchain-based digital money from the current payment structure goes beyond that," said Larry Cao, director of content at the CFA Institute in Hong Kong. "There’s a potential you can pay anybody in the system, any bank, and any merchant directly. Blockchain will change the whole infrastructure. This is revolutionary." (Bloomberg: China Is Developing its Own Digital Currency)
They've already developed it. They're now just testing. Go China!
This is proof of the benefits and legitimacy of Cryptocurrencies. If Bitcoin scaled fast enough to have made it an easier decision for a nation like China to adopt it instead of having to develop and test its own, then Bitcoin would have made a major step to becoming a global currency. I'm guessing all the infighting and delays dealing with the scaling issue, pushed China to decide against adopting Bitcoin as its currency.
This makes for an interesting case study for how to organise huge projects. You have Bitcoin, a project based on decentralised decision-making and you have the Chinese Government, an organisation with centralised decision-making. Who will act quicker? Who will innovate better? Who will adapt and change faster in catering for consumers' and public needs better?