Rolling Out the Red Carpet for Digital Currency
On a Tuesday that’s poised to change public transport, China has officially kicked off the latest round of its central bank digital currency (CBDC) pilot test program. And where better to start than in the bustling city of Guangzhou, where public bus rides can now be paid for using the digital yuan ( e-CNY) CBDC? That’s right, folks; the future is here, and it’s got a QR code!
How Does It Work?
Passengers in Guangzhou just need to download the e-CNY app, supply it with some funds, and boom—time to scan that QR code at the bus payment section! You’re no longer fumbling for change or credit cards. Just sweet, sweet digital currency. When was the last time public transport felt this modern?
Ningbo Joins the Party
Not too far behind, the city of Ningbo is following suit—in style, of course. As of Monday, travelers can now wave goodbye to old-school ticketing at 125 subway stations by using e-CNY. It seems like the e-CNY is quickly becoming the VIP currency of public transport in China!
The Growing Power of e-CNY
The Chinese government has not been shy about expanding the reach of e-CNY in 2022. Just last week, in Guangzhou, workers could now use the CBDC for their housing fund contributions. It’s almost as if the government is saying, ‘Do you want to pay for housing? How about paying with style?’
Reigniting Consumer Spending
In order to pump some life into consumer spending amid strict COVID lockdowns, the government teamed up with food delivery colossus Meituan and e-commerce powerhouse JD.com. Together, they unleashed e-CNY air-drops—think digital money falling from the sky!—that can be splurged at select venues. It’s like the government is throwing a money party and everyone’s invited!
Transactions on the Rise
Recent numbers throw some impressive shade on traditional payment methods. Between Meituan and JD.com, over 6 million unique users have engaged e-CNY to order services. JD.com reports boasting more than 4 million e-commerce transactions, racking up around 900 million CNY ($131.6 million) since they started accepting the digital Yuan. In the first five months of this year alone, e-CNY transactions collectively tallied to about 830 billion ($121.4 billion). That’s some serious cash flow!
What’s Next?
As this pilot test program rolls on, one can only wonder what’s next for China’s digital currency. Will we be paying for our bubble tea with e-CNY? Can we expect to see it used in restaurants or for rent payments? The sky’s the limit when it comes to innovation in the realm of digital currency, and China seems to be aiming for the stars.
