China continues to make groundbreaking strides in the implementation of its central bank digital currency (CBDC).
As the pilot zone expands, another city has joined the ranks by offering a generous giveaway of CBDC discount tokens amounting to approximately $140,000. The Securities Times Network (via Stockstar) reports that this initiative has been introduced in Qingdao.
Additionally, this move aims to boost the adoption of the digital yuan. The selected stations for the pilot are Zhangcun Station and Keyuanjing 7th Road, both situated on Qingdao’s Metro Line 4.
Collaboration and Support from Key Stakeholders
The Digital Currency Research Institute of the central People’s Bank of China (PBoC), the central bank’s Qingdao branch, and the Qingdao Municipal Transportation Bureau have jointly organized this pioneering project.
Additionally, the Qingdao Metro Group is actively involved in co-organizing the pilot. The project’s funding is a collaborative effort between the state-run Bank of China, China Telecom, China Unicom, and a company called Digital Finance Public Service.
Seamless Mobile Payments for Digital Yuan Users
This pilot enables customers using digital yuan to conveniently pay for their transport fees through their mobile devices. This can be done even when their phones are powered off or lack network coverage. Leveraging near-field communication (NFC) technology, which is a standard feature in modern smartphones, users can enjoy this frictionless payment experience.
Earlier this year, the PBoC introduced NFC functionality to their digital yuan app. This allows users to utilize their phones as secure “hard” wallets. The upcoming pilot will also implement this solution on the metro networks, starting from June 20.
To utilize powered-down devices for payments, users need to register their China Unicom or China Telecom SIM card information within their software-based digital yuan wallets provided by the PBoC or Bank of China. When users touch their powered-down smartphones against the card readers at the ticket gates of the participating stations, the wallet balances will be automatically debited.
CBDC Expansion: Ningbo’s “Lucky Red” Digital Envelopes
In another remarkable development, the city of Ningbo, located in Province, has announced a distribution of approximately $140,000 worth of digital envelopes filled with CBDC coins. A total of 20,000 envelopes will be given out, each containing tokens worth up to $11.
However, recipients can only redeem these coins as discounts when they spend between $14 and $28 worth of digital yuan with local merchants. The event, reported by YY News, is scheduled to take place from June 21 to June 24.
This recent initiative follows the success of similar giveaways in Fuzhou. Here, CBDC coins and coupons worth approximately $2.75 million were distributed last year. These ongoing efforts aim to foster widespread adoption and utilization of the digital yuan. Further, this will propel China’s advancement in the realm of digital payments.