Just last month, we had covered a detailed story on top countries that are exploring CBDCs. Abbreviation for Central Bank Digital Currencies, these countries are harnessing the true potential of blockchain. We’ve highlighted how China’s strategy for Digital Yuan is fascinating to watch. As the world’s most populous country with digital-savvy citizens, it’s able to roll out its CBDC quite effectively. Now a report by Tuoluo Research Institute is giving a closer look at the current status of China’s CBDC.
Digital Yuan’s ditribution is done in a unique Chinese way
According to Chinese tradition, red envelopes with money are used for gifting children, friends, family members, and employees. In China, the red colour signifies energy and happiness. The report highlights that the Chinese authorities have distributed over 230 million Yuan via red envelopes, which translates to $35 million.
Digital Yuan is available in 5 Chinese cities
The interesting thing is that the Digital RMB is still in the pilot stage. However, the country’s government has rolled it out quite thoughtfully, focusing on urban and rural areas. As a result, along with popular countries like Beijing, Shenzen, and Shanghai, the Digital Yuan is also available in Chengdu and Suzhou.
Digital Yuan is distributed by following a region-specific strategy
China is also strategic about the distribution of Digital Yuan by adapting region-specific plans. In Beijing, for example, the authorities are prepping for the upcoming Winter Olympic Games. Hence, they’ve announced a $40 million lottery for giving away Digital RMB(roughly $6.3 million). But that’s not it. The government has also partnered with select merchants in the Wangfujing business district and popular online marketplace JD.com for accepting the CBDC.
In Shenzen, on the other hand, the government is promoting things like medical care, education, and transportation for use cases of digital money. The report mention that over 30,000 merchants in the city accept the CBDC.
Similarly, Chengdu has disbursed over 40 million in Digital Yuan (~$6 million), which can be used at over 11,000 merchants. The city is also piloting the use of virtual currency in the public transportation system.
China will be enabling all sorts of payments via Digital Yuan sooner than later. But, as mentioned in previous articles, this will also establish Chinese dominance on the world map. That’s because the CBDC isn’t limited by geographical boundaries and can be used anywhere in the world.
It’s also interesting to see China focusing on its CBDC while continuing to ban miners, issue warnings against financial institutions for cryptocurrencies, and more.