The People’s Bank of China urges US Companies to accept the digital yuan to increase its global adoption. China had embarked on developing its digital currency in 2014—a digital yuan that the central bank regulates. Thus, becoming the most advanced country to set its path in the CBDC space.
As a legal tender, the electronic Chinese yuan (e-CNY) is accepted by all entities in the country. Similar to the mainland’s paper currency, it is assured and backed by the PBOC. As per its value, one e-CNY holds a monetary value equal to one paper yuan.
Moreover, reports tell that the Chinese government is urging fast-food giant McDonalds to expand the digital yuan trial. Expand it to more of its restaurants across the nation in anticipation of the 2022 Beijing Winter Olympics.
The 2022 Beijing Winter Olympics will likely become the first scenario for digital yuan to be used in large-scale cross-border payments.Liu Dian, Researcher at Chongyan Institute of Renmin University of China
The Aim of China
The digital yuan pilot scheme started in Shanghai with 270 McDonalds restaurants currently accepting digital yuan as a means of payment. Now the Chinese government is urging the fast-food giant to roll out the digital yuan payment more widely. It has also come forth that other retail giants such as Visa and Nike were also pressured to accept the CBDC.
China is determined to enforce the adaptation of the digital yuan nationwide before the Beijing Winter Olympics in February 2022. But the pandemic itself might have stumbled upon China’s dreams a little. Nevertheless, China is still on its path to eliminating the fiat currency from circulation and bringing the e-CNY to people’s pockets.
While the digital yuan is being pushed, the global digital currency race is also speeding up. Meanwhile, the Monetary Authority of Singapore launched a challenge to seek retail central bank digital currency solutions on Monday; So did Israel.