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Top CBDC News: China Begins Next Phase of CBDC Testing with e-CNY Payment for Public Transport

24-Aug-2022 By: Simran Mishra
Top CBDC News: China

According to several reports, China formally launched the next phase of its central bank digital currency (CBDC) pilot test program on Tuesday. 

From now, the digital yuan (e-CNY) CBDC is used to pay for public bus rides on 10 transit routes in Guanzhou, a first for the country. To do so, travelers must first download the e-CNY app, deposit funds, and then scan the QR code available in the bus payment section.

Similarly, the city of Ningbo announced the day before that travelers can now use e-CNY to pay for metro travel at 125 stations. Ningbo is China's ninth city to implement the e-CNY pilot test in its subway lines, allowing passengers to just scan and pay for their journey.

This year, the Chinese government has swiftly extended the use of the e-CNY. Just last week, it became possible to use the CBDC to pay for employee housing fund payments in the city of Guangzhou. 

In order to boost consumer spending in the face of strict coronavirus lockdowns, the government collaborated with food delivery company Meituan and e-commerce platform to develop e-CNY air-drops that can be redeemed at listed venues.

Meituan's most recent data update, dated June 20, showed that over 6 million unique users had ordered services with e-CNY funds. Meanwhile, reported that as of July, it had processed over 4 million e-commerce transactions worth an estimated 900 million CNY ($131.6 million) since accepting the e-CNY as tender. In the first five months of 2022, around 830 billion ($121.4 billion) in e-CNY transactions were reported.

As previously reported by CoinGabbar, China is the only country in the digital world to have successfully completed numerous trial phases of its digital yuan CBDC. However, China is not alone in this industry; many other nations have also deployed their CBDC, but China is ahead of the other countries in terms of the trial phases.

Read also: No need to grant cryptocurrencies a special status, said the SEC chair.

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