According to details gathered from a number of sources, the second phase of China’s central bank digital currency (CBDC) pilot test programme got off to an official start on August 24.
It is now possible to pay for public bus journeys using the digital yuan (e-CNY) CBDC in the city of Guanzhou, which is a first for the nation. This payment option is available on 10 different transit lines. Downloading the e-CNY app, making a deposit, and scanning the QR code that is shown in the bus payment area are the only steps that passengers need to do in order to pay for their travel using the app.
Similarly, the city of Ningbo announced the previous day that customers may now use e-CNY to pay for travels on the subway at 125 different stations. The e-CNY pilot programme has now been rolled out across all of Ningbo’s subway lines, making it the ninth city in China to do so. This allows customers to just scan their tickets to pay for their ride.
This year, the Chinese government has moved quickly to increase the use of the electronic version of the CNY. It wasn’t until only the previous week that the CBDC was approved to be used as a method of payment for employee housing fund payments in the city of Guangzhou.
In the face of stringent coronavirus lockdowns, the government formed a partnership with the food-delivery company Meituan and the e-commerce platform JD.com to develop e-CNY air-drops that may be spent at the venues that were listed. This was done with the intention of reviving consumer spending.