Chinese officials have reported an increase in the adoption of the digital yuan among overseas visitors, as well as more Chinese citizens receiving their salaries in CBDC wallets. To showcase the digital currency, state-run banks in the Hangzhou Asian Games Village set up special digital yuan demonstration booths, where athletes and coaches from various Asian countries were shown how to use the digital yuan to make purchases at stores in and around the village.
The event, which concluded on October 8, marked the first major international showcase for the digital yuan. To further promote its use among foreign visitors, China released new CBDC features, including an English-language version of the central bank’s digital yuan app and a link to Hong Kong’s FPS payment platform.
State-run banks have also started promoting the digital yuan to international students at Chinese universities. Visitors to China can now register and open a digital yuan wallet using an overseas mobile phone number. They can also top up their wallets with overseas Visa and MasterCard bank cards. Additionally, non-Chinese residents can use QR codes from Alipay and UnionPay to make payments in Mainland China through some overseas wallets.
According to an Industrial and Commercial Bank of China spokesperson, these new functions will make payment processes shorter and ensure simpler and more friction-free transactions for foreigners. It seems that the digital yuan is not the only payment system benefiting from the Asian Games. Alipay data shows a 69% increase in daily payments made by inbound tourists since the start of the games.
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Dong Ximiao, the Chief Researcher at the China Merchants Union, believes that convenient and novel forms of cross-border payment can optimize the payment experience for overseas tourists coming to China, further driving the Chinese retail market.
In addition to the growing usage among overseas visitors, more Chinese state-operated firms are now paying their staff in digital yuan tokens. Last month, the Zhongkai High-tech Industrial Development Zone in Huizhou, Guangdong Province announced that it would start paying its staff using the CBDC. Now, the Huizhou Daily reports that the bureau has successfully carried out its plan. Digital yuan wages were paid to 1,211 officials and employees in 25 district-level agencies and public institutions. This marks the first time workers in the province have received their salaries entirely in CBDC tokens.
Huizhou officials claim that 649,000 personal digital yuan wallets have been opened in the city, along with 55,000 corporate wallets. This demonstrates the increasing adoption of the digital yuan within the city. Earlier this year, the city of Changshu in Jiangsu Province announced that all public officials and employees of state-owned enterprises would be paid in digital yuan starting in May 2023, further accelerating the adoption of the CBDC.
The expansion of the digital yuan’s usage among both overseas visitors and Chinese citizens reflects the Chinese government’s push to establish a digital currency that can facilitate cross-border transactions and increase financial inclusivity. With the digital yuan gaining traction and being integrated into various aspects of daily life, China is leading the way in the development and adoption of Central Bank Digital Currencies.
