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HomeCryptoCurrencyChina Starts New Trial of Digital Yuan in Chengdu City

China Starts New Trial of Digital Yuan in Chengdu City

The Government of China began tests of the digital yuan, in the city of Chengdu, located in the southwest of that country, after distributing 40 million digital currencies among 200,000 users, through a raffle.

According to the Hong Kong media Forkast News, the so-called “red packages” distributed in Chengdu and that traditionally contain 200 digital yuan, this time were divided into two types: some will have 178 yuan and others 238 yuan . Each yuan is equivalent to USD 0.15.

The inhabitants selected for the experiment through a lottery, will have the opportunity to spend the coins until March 19 in at least 11,000 enabled shops , which includes online stores such as the gigantic JD.com platform.

The system officially known as Electronic Payment in Digital Currency that is developed in the country In trial mode since October 2020, it has been successfully implemented in cities such as Shenzen, Suzhou and Beijing. To date 170,000,000 digital yuan have been distributed.

In the case of the city of Shenzhen, last January, the Chinese citizens were able to exchange cash for digital yuan (or vice versa) at ATMs of the Agricultural Bank of China, as reported by CriptoNoticias.

pagos usos mercado China
Many physical stores and e-commerce platforms accept the digital yuan in this new test. Source: Peggy cci / pixabay.com

Another city that recently took part in the trial with the digital yuan was Shanghai. There, a test was carried out with citizens who do not have mobile phones. To achieve their objective, the authorities put into operation a physical card for payments with the digital currency.

Last February, this medium also announced that some vending machines located in several metro stations of Shanghai, China are accepting the digital yuan as a form of payment.

Payment platforms adapt to the digital yuan

In addition to testing in several cities for the direct use of digital currency, MYbank and WeBank, were authorized to use it in their respective payment platforms , Alipay and WeChat Pay, as detailed by CriptoNoticias.

According to iResearch data, the mobile payments sector in China is controlled by es the platforms with 94% of the market. During the second quarter of 2020, transactions reached 59 trillion yuan.

China’s progress with respect to its digital currency is increasing. However, you must win the support of users. Transactions in this currency are recorded in a database controlled by the monetary authority and this is a concern of the population that the People’s Bank of China will have to face to carry out its adoption plan.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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