Home
News
- In January, the Agricultural Bank of China launched digital yuan ATMs
- The Industrial and Commercial Bank of China is the first bank in China to fully support the digital yuan exchange
- Another major bank involved in China’s CBDC tests, the Agricultural Bank of China (ABC), has installed more than ten ATMs
China’s adoption of its central bank digital currency (CBDC) continues apace, with major banks launching a large number of digital yuan-powered ATMs. According to the state-run Xinhua news agency, the digital yuan, a CBDC controlled by the People’s Bank of China, is now available for deposit and withdrawal at over 3,000 ATMs across Beijing. According to the report, the Industrial and Commercial Bank of China’s Beijing branch has become the first bank in Beijing to fully enable digital yuan exchange by installing more than 3,000 digital currency-compatible ATMs.
Institutions supporting Digital Yuan
ICBC, which has over 3,000 ATMs throughout China’s capital, is said to be the country’s first bank to add full support for digital yuan withdrawals and deposits (also known as Digital Currency Electronic Payment) (DCEP). Another major bank involved in China’s CBDC tests, the Agricultural Bank of China (ABC), has installed more than ten ATMs in Beijing’s Wangfujing area, a major shopping street. As previously reported, the state-owned bank debuted digital yuan ATMs in January, allowing customers to deposit and withdraw the digital currency at select branches throughout the Shenzhen region.
The feature was first tested by the ABC in Shenzhen in January, during the city’s second round of the e-CNY lottery campaign.
Involvement of the CBDC in the Digital Yuan
A CBDC is a government-controlled digital version of a physical currency like the US dollar, Euro, or Chinese yuan (renminbi). The DCEP, unlike the regular yuan, is programmable money. It isn’t built on top of a blockchain. Several countries are experimenting with CBDC, but China is leading the pack. The People’s Bank of China, the county’s central bank, intends to replace cash with the digital yuan.
As part of a trial, China will distribute $6.2 million in digital currency to Beijing residents
Beijing’s Local Financial Supervision and Administration Bureau announced earlier this month that 200,000 residents of the city would be eligible to enter a lottery for 40 million renminbi ($6.2 million). The winnings will be distributed in the digital yuan, which will be delivered via digital red envelopes.
According to the Beijing Local Financial Supervision and Administration Bureau, residents of the Chinese capital can enter the lottery using two banking apps to win one of 200,000 so-called red packets. Each envelope contains 200 yuan (approximately $31) in digital currency that can be used at a limited number of merchants. The registration deadline is June 7 at midnight.
DCEP pilots have been conducted in a number of China’s major cities. In October 2020, Shenzhen, the country’s major tech hub, held a similar lottery. More than 10 million yuan (approximately $1.5 million) was distributed to 50,000 residents.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
