The Chinese government has planned several digital yuan pilot projects, which could become a milestone for CBDC adoption in the country for years ahead.
A local news agency in China revealed the Chinese government’s new CBDC pilot project plans. According to the report, multiple digital yuan pilot projects are planned along with the modernization of the Pudong New Area. Pudong, located in Shanghai, will become a hub for international trade activities with free trade zones, better supply chain management, and other facilities.
New educational and health facilities in the area can attract foreign talent to Pudong as well. “Pilot the use of digital renminbi in trade settlement, e-commerce payment, carbon trading, green power trading and other fields, and standardize and expand the application scenarios of digital renminbi in the use of fiscal funds,” noted the plans regarding using the CBDC pilot projects in the modernization.
The Chinese government has headed the promotion and development of the digital yuan for over a year. Just a year back, the digital currency received a smart contract function. Using the food delivery app Meituan, prizes went to users who paid using eCNY wallets. Those who searched for the keywords of the day got the particular prizes.
Moreover, in September 2023, the digital yuan app also got major updates. The move especially benefited tourists, who could start paying through the app with Visa and Mastercard options. Thus, although China has banned active crypto trading, it has been an active proponent of CBDC adoption.
China has also partnered with private institutions to explore digital currency use cases. Standard Chartered, for instance, is a prime example of such an exercise. The bank’s division in China has enabled its clients to access the digital yuan platform. Meanwhile, it joined the country’s CBDC pilot program.
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