- China starts accepting digital yuan payments.
- Tong Ren Hospital is the first pilot institute for digital RMB.
- Prior to Shanghai, trials initiated across selected Chinese cities.
China’s huge efforts to digitize its national currency have shown to be very effective. However, as the country started to see more real-life use cases for the digital yuan. Moreover, the digital yuan have been piloted in different situations including shops and hospitals across the city.
Shanghai’s Metro Stations Now Accepting Digital Yuan
Automatic vending machines in some metro stations in Shanghai now accept digital yuan as payments. At the moment, only invited users can try digital yuan. Before the Spring Festival holidays, banks issued “red envelopes” of digital RMB to users in a test.
Added to this, one bank sent “red envelopes” worth 30 yuan ($4.65) each to clients as part of a test. Moreover, there were no large-scale businesses among those participating in the test.
Tong Ren Hospital is the first pilot institute for digital RMB. However, the Hospital affiliated with the Shanghai Jiao Tong University School of Medicine started the payment channel for the digital currency in early January.
In addition, all the 2,000 medical staffers at the hospital can use bank cards that store digital RMB to pay for their meals. Furthermore, the digital renminbi is expected to be launched in other situations at hospitals. Especially for registration with the hospital and payment for medical treatment.
Compared with banknotes, digital RMB is more traceable and controllable. Moreover, benefiting the fight against money laundering, terrorist financing, tax evasion, and corruption, as per Li Feng, a professor with the China Academy of Financial Research of Shanghai Jiao Tong University.
Furthermore, the offline scenario test in Shanghai will continue till the end of February. Prior to Shanghai, trials for Digital Currency/Electronic Payment (DCEP) have been initiated across selected Chinese cities. Even more, the cities include Suzhou in East China’s Jiangsu Province and Shenzhen in South China’s Guangdong Province.
Recently, China is testing its digital yuan currency in the City of Beijing. This is to prepare for the forthcoming Winter Olympic Games in 2022.