China Launches Pilot Test of Utilizing Digital Yuan as Payments at Gas Stations in Shenzhen
Chinese citizens can now use central bank digital currency at gas stations without an internet connection. Guangdong Petroleum has launched the pilot program for digital yuan on October 13.
In Shenzhen, citizens can utilize digital currency for retail payments such as refueling at eleven different gas stations. For payments, digital currency holders will have to scan the QR code provided by the gas stations. In terms of QR code scanning, the application will work similarly to Apple Pay.
“Dual Offline” Technology
Offline processing is the most interesting and outstanding feature of the digital yuan application. To process, it does not need an internet connection like payment application WeChat. What’s more, it does not even need mobile signals for payments which make it “dual offline” application. Citizens just need charged mobile phones to make the fastest and secure transactions.
People, who use the digital yuan application for payments at gas stations, have expressed very hopeful and positive feedback about it. According to citizens, it requires a few seconds to complete transactions. One can use digital yuan purchasing items to refueling at gas stations in Shenzhen.
Expansion of Pilot Test to more than 110 Gas Stations
According to the report published by the local news agency, Economic Information Daily, Guangdong Petroleum will expand the facility of digital yuan payments to more than 110 gas stations operating in Shenzhen.
As a part of the pilot program under the CBDC project known as Digital Currency Electronic Payment (DCEP), Chinese citizens have received $1.5 million in digital currency, digital yuan. The latest pilot test is a part of China’s five-year plan which is working on the deployment of digital currency and blockchain technology in the country.
According to the plan set out by the Chinese government, central bank digital currency must be functions before the 2022 Winter Olympics. Digital yuan can remove the dependency of China over the US dollar.
China is the first country to issue a state-backed digital currency as it has started working over it many years back when no central bank was thinking about CBDC. Currently, more than 70 central banks are working over digital currency in one way or the other.
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