China’s digital yuan made a debut at the China International Import Expo (CIIE).
China appears to be leading the race of countries working on their central bank digital currencies (CBDC). Already, the People’s Bank of China (PBOC) has started tests in some cities using the digital yuan, or e-CNY. Mu Changchun, head of the PBOC Digital Currency Research Institute, revealed that the CBDC had been used in several transactions worth about $9.7 billion.
PBOC Reveals Machine That Converts Foreign Currencies to its CBDC
Several central banks globally are intensely working on creating their CBDCs. However, just a few, including Nigeria, have been able to launch their central bank digital currency. Nigeria became the first African country to launch its digital currency in October. Despite banking cryptocurrency in the country, the Nigerian government has rolled out eNaira. It is to be a digital version of the nation’s currency, Naira. eNaira is meant to complement Naira and not replace it.
The PBOC began its e-CNY research in 2017. Since then, the bank has made significant progress as it records achievements.
As the PBOC continues to put in more effort in launching digital yuan, the central bank has reportedly revealed a machine that converts foreign currency to digital yuan. Probably, the machine will be used during the Beijing Winter Olympics in 2022. The PBOC has been making plans to launch its CBDC and introduce it to the world during the games in the coming year. The bank unveiled the machine during China’s International Import Expo in Shanghai. Reports explained that the machine would not demand bank accounts. Rather, users will have to link their passports to transactions. Currently, China’s unique machine supports 17 foreign currencies.
Digital Yuan Debuts at CIIE Fourth Edition
Additionally, China’s digital yuan also made a debut at the China International Import Expo (CIIE). The CBDC is being used at vending machines, booths, and restaurants for the first time at the 4th CIIE. The Chinese government began the CIIE in 2018 to support trade liberalization and economic globalization. The annual event has now attracted almost 3,000 companies across 127 countries and regions. In this ongoing edition which ends on the 10th of November, representatives of the companies and other attendees can use digital yuan to pay for their food at restaurants. Also, participants at the fair can use China’s CBDC to buy souvenirs at the event.
An employee at the Bank of China, Chu Yifeng, shed more light on the move. Yifeng said that the bank has set up six booths at the venue to help people apply for a digital yuan wallet. The employee confirmed that about 60 to 80 people visit the boots daily to apply for a digital yuan wallet.
Also, consumers can get a “30 off 50” discount when paying with digital yuan at the souvenir store of the National Exhibition Convention Center (Shanghai). Restaurants like KFC and Pizza Hut are also offering discounts for users of the e-CNY.
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