The tech-savvy people of China will now be able to enjoy a more convenient life in Guangzhou, where public transport tickets can be purchased via China’s digital yuan app. China is the country that first issued a digital version its national currency. It will now be offered in 23 cities. Because it is digital currency issued by central banks (CBDC), digital yuan belongs to the bank. The currency can be used by some Chinese commercial banks, but they will need to be issued a license from the Central Bank.
All-in-One App For Chinese Citizens
You only need a QR code in order to purchase Guangzhou tram fares. China’s government had announced previously that it would release a digital Yuan app for iOS or Android in 23 cities. But, the digital Yuan is only fully functional in 12 of these cities. That list is likely to grow in the future. The People’s Bank of China released an agreement on April 2nd, 2022, which outlined that the program will include 6 cities in the Zhejiang region, which will hold the 2022 Asian Games.
Xiamen (still a fresh digital currency) offers residents in tits an option to add funds to their transit swipe cards using the app. Next, the app will offer full functionality in larger cities such as Guangzhou. This will allow passengers to directly pay each fare through their smartphone.
*CHINA EXPANDS DIGITAL YUAN TRIALS TO MORE CITIES – BBG pic.twitter.com/m3OtxX3S8p
— Investing.com (@Investingcom) April 3, 2022
It’s not for everyone, but it makes life easier
This digital currency (e-CNY) is backed by the , bills and coins, as well as being supported by the Central bank’s silver and gold reserves. Considering that RMB is a fixed-price currency, China’s national digital coin provides a sense of stability. Foreigners might have difficulty acquiring the currency and using it. One reason is the limited availability of the digital Yuan app in Chinese.
Digital yuan can be used as an example of government-owned currency. It’s a simpler version of digital currency, compared to crypto, due to a couple of factors. First of all, e-CNY is not decentralized as crypto is, and second of all, it’s not based on blockchain tech. The digital yuan is primarily designed for retail transactions and casual transactions.
There are more than 80 countries worldwide that have developed their digital currency. The Chinese digital yuan is a huge success story, particularly when you can prove its need with numbers. The $11 billion mark was reached last year for digital yuan transactions (e-CNY), and this figure is only expected to rise as the 2022 calendar draws near.