The country is now testing the digital yuan—e-CNY—for use in payments of tax, stamp duty, and social security premiums with Zhejiang, a province in Eastern China, pioneering the effort.
China’s central bank plans to expand the pilot to Xiamen, Fuzhou, Tianjin, and cities in Zhejiang province, which will be hosting the Asian Games in September.
An official from Nanjing city wants the law amended to clarify the digital yuan’s position in the payment system, including how banks should handle it.
The U.S. dollar makes up 51% of central bank reserves, while the CNY only takes up 2%. Also, the U.S. dollar is involved in 88% of global FX transactions, a figure that remained stable for 20 years.
The wallet is available for users in Shenzhen, Shanghai, Chengdu, Qingdao, Suzhou and six other cities, as well as those in Beijing for the Winter Olympics.
China has embarked on the second phase of its cross-border central bank digital currency research with Hong Kong, and it expects to link the CBDC to the city’s e-banking system.
Four state-owned banks issued a new batch of digital yuan coupons in Beijing, which officials said can be used for deliveries, supermarkets, laundries, bookstores, and even public transportation.
Local authorities received a report from a woman who claimed she had been defrauded through a well-orchestrated digital yuan scam.
The Chinese central bank revealed the figures at a recent event, adding that there are now 10 million corporate accounts and dismissing privacy concerns.
The digital yuan pilot started in Shanghai with 270 McDonald's branches accepting central bank digital currency as payment, although reports indicated that companies including Visa and Nike are also being urged to accept the digital currency.
JD.com has teamed up with the Bank of Communications to give away $2.5 million in a lottery for the second time as the launch of digital yuan nears.