The initial test, set at the end of this month in Shenzhen, will involve some of the largest banks in the country and telecom carriers, the Times reported, quoting the Caijing Magazine.
Central banks and government finance officials have long worried about the challenges posed by digital currencies, and the risk they can be used for money laundering and financing terrorism
China was once a stronghold of bitcoin
Senior police officials instructed to complete the preliminary rollout of the cyber cells by October 15
China's central bank set up a research team in 2014 to explore its own digital currency to cut the costs of circulating traditional paper money and boost policymakers' control of money supply
Facebook's new currency plan under scrutiny in Congress
Economies around the world are becoming increasingly cashless as credit and debit cards or even mobile phone apps are used as modes of payment
For a digital currency to be popular, internet penetration as well as digital literacy need to be greatly improved, say experts
Bitcoin slumped to as low as $2,449.4 in intraday trading
New digital money, Ether, has risen an eye-popping 4,500 per cent since the beginning of the year