The Chinese government recently urged giant US companies such as McDonald’s, Visa and Nike to expand the digital yuan trial to more outlets in the country by anticipation of the 2022 Beijing Winter Olympics.
In Shanghai, the central bank’s digital currency (CBDC) is accepted in 270 McDonald’s restaurants, but the government wants the digital yuan payment method to be more widely used.
Another e-CNY corporate zone
An e-CNY enterprise zone is to be launched by the Beijing Municipal Administrative Center to explore the digital renminbi financial system in Beijing. To enable faster transactions for the experimental digital currency, there are plans to improve the city’s 5G infrastructure.
The Municipal Administrative Center area is the second to test the e-CNY in town. Earlier this year in June, the venue of the 2022 Winter Olympics, Shijingshan District, indicated its support for testing e-CNY transactions with foreign tourists.
The pilot application of the Beijing Legal Digital Currency Pilot Zone is being carried out by six state-owned banks in industry, agriculture, China, construction, communications and postal savings. The People’s Bank of China and the Beijing Municipal Bureau of Financial Supervision and Administration have also supported this pilot application.
Multidimensional digital RMB application scenarios have been developed in industries such as business, leisure and entertainment, commercial consumption, tourism, catering and accommodation services. It also involves important areas such as Wanda Plaza, Donglang Cultural and Creative Park, Beijing Universal Resort and Canal Business District.
There are plans to improve the renminbi payment function while innovating digital renminbi payment and exchange methods, promoting smart portable payment devices, accelerating the deployment of digital renminbi exchange machines, and offering the convenience of exchanging between domestic and foreign currencies and the digital renminbi.
With these latest developments, China is poised to follow in the footsteps of the Bahamas, which launched its central bank digital currency in October 2020.
Watch: CoinGeek New York, BSV Blockchain in China
New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.