Over 300K Merchants In China’s Changsha City Adopt Digital Yuan
The Chinese central bank digital currency (CBDC), known as the digital Yuan, continues to gain popularity among merchants in the country. Various data shows that more than 300,000 merchants have integrated payment in digital Yuan on their platforms.
Rising Use Of Digital Yuan
A recent publication from the Hunan province newspaper shows that over 300,000 merchants adopted digital Yuan in Changsha toward the end of last year. According to the magazine, more than 53.25 million transactions involving digital Yuan were processed by city residents over the past few months.
Furthermore, all transactions processed in Changsha province, a city home to less than 8 million residents, amount to over $1.2 billion. It is the capital of the Hunan province, known for its historical activities dating back to the Zhou dynasty between 1046-256 B.C.
After China started its digital asset pilot test phase, Changsha was added to the second batch of cities for the pilot project in April 2021, along with Shanghai, Xi’an, Dalian, Qingdao, and Hainan. The Chinese digital Yuan pilot project started in April 2020 in some cities, including Shenzhen, Chengdu, Suzhou, and Xiong’an, with residents of the provinces being the first to test the token’s usage.
So far, the pilot program has been extended to 17 cities in the country, with Hong Kong and Macau reportedly collaborating with the Beijing-based central bank to test the digital asset’s cross-border functionality better.
Supporting Digital Yuan Adoption
According to the People’s Bank of China (PBoC), the city of Changsha is the leading Chinese city with the highest rate of digital Yuan adoption in the country. Per a PBoC report, the city has constantly ranked as the top destination with the highest number of active personal digital wallets and business transactions using the virtual Yuan.
During the Chinese Lunar New Year celebration last December, the PBoC and its commercial allies are reported to have embarked on a massive adoption campaign for the digital Yuan. The move also witnessed some token giveaways in cities like Beijing and Hangzhou.
The state-owned China Construction Bank offers up to 50% discount to customers in Tianjin using the digital Yuan to pay for utilities.
Similarly, in Shenzhen, the municipal government organized $15,000 digital Yuan coupons with a maximum value of $100 for users to utilize, provided that they pay for services in stores and restaurants accepting the digital Yuan.
In recent weeks, China has been one of the countries with a comprehensive use case for its official digital token. China’s digital Yuan success is remarkable, given that some central banks are considering pulling the plug on developing their CBDCs.
Although CBDC development is still not at the expected level, countries like China are working to ensure a broad use case for its use. It is worth noting that China’s ban on private digital assets such as BTC and ETH was to pave the way for the digital Yuan.
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