Home
News
- China allows subways to accept payments in digital yuan in the city of Beijing
- Subway riders will be able to access the payment system through a mobile application
- Digital yuan continues to expand its roots in the country with a strict ban on Bitcoin mining
China is one of the countries that has imposed a strict crack down on cryptocurrency mining in the country. The Chinese government planned the crack down because of two sole reasons. Primarily, the risk and frauds associated with Bitcoin transactions are at a very high rate and secondly the growth of the self developed digital currency, digital Yuan. With the onset of the launch of digital yuan, Beijing is incorporating it at major payment stations, including the subway in the city.
Beijing hosts digital payment for subway rides in digital yuan
Beijing has become the first place to accept digital currency in the subways. The rail transit service will now accept digital yuan for subway rides via an assimilation with the Industrial and Commercial Bank of China. Expanding the scope and utility of the digital yuan, China has worked towards adopting a self made and risk free currency that will not harm the fiat money of the country. The country’s central bank digital currency (CBDC), expands the scope of the launch of digital yuan payments for services like transport.
A pilot program was launched on 30th June according to an official announcement. It enables passengers to have access to 24 subway lines and 4 suburban railway stations with the use of digital yuan, which is also referred to as e-CNY.
Travellers can make payments for rides through an application
The fresh service is only accessible by travellers that hold a bank account at the Industrial and Commercial Bank of China, the primary bank involved in China’s CBDC trials. The users need to download a mobile application which will be linked to the bank account with the Industrial and Commercial Bank of China. The rail transit network announced the app system. The announcement states that the Beijing rail transit service providers will persistently endorse unique applications that support the digital yuan to optimize the new digital travel experience.
The information was released right after Suzhou, a city in East China’s Jiangsu province, launched a similar digital yuan collaboration on Tuesday. Suzhou was the first city to implement e-CNY payments for subway travelling. With Beijing hopping on the subway trend, the city has become a fundamental center for China’s digital yuan tests, holding huge numbers of e-CNY integrations and other related enterprises. Until the mid of June, Beijing has held upto 3,000 digital yuan-enabled ATMs that allowed the public to deposit and withdraw the digital currency. Before this announcement, the Beijing Local Financial Supervision and Administration announced a program to distribute $6.2 million in digital yuan to Beijing residents.
China’s support towards the digital yuan is highly spirited and the crackdown on Bitcoin mining is one of the ways to grow the Chinese digital yuan.
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.
