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In January, China was trying to introduce the digital yuan to a wider population in collaboration with the tech giants such as Tencent and Alibaba. There were doubts about whether Chinese people would be able to embrace the new payment system despite already existing payment systems.
The existing payment apps, such as WeChat or Alipay, are easy to use. One simply needs to link their bank accounts to the app. On the other hand, in order to use the digital yuan app, users would have to sign up in a separate app and link that to their WeChat or Alipay. In short, the process offered resistance.
However, it has turned out that the Chinese people have embraced the digital yuan with open hands. Digital Yuan has now found broad use-cases because of the promotion of banking institutions, internet companies, and retail terminals.
China’s digital yuan is a central bank digital currency (CBDC), also known as the e-CNY; it was developed to replace the use of cash and coins already in circulation. Currently, it is being trialed in 23 regions and cities.
China’s digital yuan transactions hit around 87.57 billion yuan by the end of 2021. The country has put in efforts to promote the digital yuan with pilot programs.
China’s School Promotes Digital Yuan Payments
Now, further expanding the use of digital yuan, a school in China has issued students a campus smart card device with digital yuan payment functionalities.
The Lu Xun High School in China’s Hainan province has taken this step to expand the use of e-currency at education institutions, reported China Central Television (CCTV), the largest state-owned broadcaster in China, on Tuesday.
As per the reports, The device enables contactless payments through the use of NFC (near-field communication). It can also serve as an alternative to the mobile phone prohibition on students since it contains a SIM card that enables digital yuan payments and phone call services. China Mobile and Industrial and Commercial Bank of India have together developed the card.
The statistics by Forkast reveal that there are at least 19 universities and colleges and four middle and high schools that have started accepting digital yuan payments.
The use of digital yuan is not just limited to institutions. It is being used in various public transport and municipal services, including buses, trains, metro, taxation, social insurance, and highway toll gates.
Many countries around the world are introducing CBDCs of their own currency and making efforts to expand their use. However, China is undoubtedly leading the game. With the pace it’s going, it looks like it will soon be able to reach its goal of making the country go cashless.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
