China Paves the Way for Digital Yuan Adoption in Upcoming Asian Games
As the world eagerly anticipates the approaching Asian Games, China is witnessing an unprecedented surge in the adoption of the digital yuan as a preferred mode of payment. With the host cities introducing various options for the central bank digital currency (CBDC) in transportation, China’s digital currency ecosystem is evolving briskly.
Ride Code: The New Face of Transport Payments
In preparation for the Asian Games, the Central People’s Bank of China (PBoC) has updated its official digital yuan app, featuring a groundbreaking “ride code” function. This innovative feature empowers smartphone users to scan their devices on the Hangzhou Metro, with the metro system seamlessly deducting transport fee payments from the users’ e-CNY wallets.
The ride code system extends its footprint beyond Hangzhou Metro, marking its presence on the Hangzhou-Hai Intercity Railway as well. This railway, a crucial transport network, connects major Zhejiang Province cities like Haining with Hangzhou, further expanding the reach of digital yuan payments.
Digital Yuan’s Grand Showcase
The PBoC initially aimed to present the CBDC as an international showcase at the 2022 Winter Olympics held in Beijing. However, the COVID-19 pandemic necessitated scaling down these plans. Despite the restricted attendance of only athletes and coaches, they were encouraged to use the coin, marking the initial steps towards international adoption of the digital yuan. The participants were handed free, commemorative e-CNY hard wallets, fostering an environment conducive to digital currency adoption.
Embracing Digital Transformation in the Post-pandemic Era
The upcoming Asian Games will be China’s first significant international sporting event since the pandemic. Remarkably, it will also be the first since the CBDC pilot project reached its advanced stage, showcasing China’s commitment to building a robust digital economy.
Widening the Scope of Digital Payments
In a testament to the growing acceptance of the digital yuan, the city of Ningbo announced last year that all 125 of its metro stations now accept digital yuan-powered fee payments at ticket barriers, enabling a seamless and efficient payment experience for commuters.
Innovation in the Face of Adversity
The PBoC continues its innovation spree with another update to its official digital yuan app earlier this year. The important update allows citizens to make electricity-free digital yuan payments, addressing potential concerns of device power or network coverage. This means users in the pilot zone can use their smartphone’s hardware to pay transport fees and make micropayments even when their handsets are powered off or lack network coverage, making digital yuan payments more accessible and reliable.
As China accelerates digital yuan adoption, the upcoming Asian Games promise to be more than just a platform for athletes to showcase their talents. It will be a grand stage where the world witnesses the tangible impacts of a digital currency ecosystem, setting a precedent for other nations to follow.