As is well known that China is a leading country in trying to imply cryptocurrencies issued by the country’s central bank. The digital yuan is China’s digitized fiat currency, also known as the central bank’s digital currency (CBDC). It will be an alternative to fiat currency for the people.
The digitized fiat currency promises easy, fast, cheap and secure transactions. By using blockchain technology, it is safe from plagiarism and errors in the checking of any payment. Thus, apart from this geopolitical issue, it is one of the reasons why the authorities are trying to realize the CBDC.
In the latest development, China continues to expand its central bank’s digital currency (CBDC) reach by initiating digital yuan payments for transportation services.
Based on an official announcement on Wednesday, the Beijing subway has launched a trial program that allows Chinese people to use digital yuan to use subway services.
The new service is only available to customers who have a Chinese commercial bank account, a major bank involved in China’s CBDC testing. According to a spokesman for the Beijing rail transit network, users can download a mobile application linked to a bank account to access the service
The report comes after Suzhou, a city in East China’s Jiangsu province, launched a similar digital yuan integration on Tuesday. According to a Sina Finance report, Suzhou is the first city in China to start accepting digital yuan payments for subway travel.
In mid -June, Beijing hosted a 3,000 yuan digital ATM to operate. In other words people can store and issue digital yuan. On the other hand, the Beijing Local Financial Supervisory and Administration Agency announced an initiative to distribute $ 6.2 million yuan digitally to Beijing residents.
