China is gearing up for a significant digital yuan adoption push ahead of next month’s Asian Games, where it plans to showcase its CBDC (Central Bank Digital Currency) to a large international audience for the first time. This move marks a milestone in China’s digital currency journey and demonstrates its commitment to becoming a global leader in the digital economy.
The Asian Games, to be held in Hangzhou, Zhejiang Province, from September 23 to October 8, have been designated by Beijing as a crucial moment for its coin. It is the first major international sporting event to be held in China since the lifting of COVID-19 containment measures, and China sees this as an opportunity to demonstrate the capabilities and potential of its digital yuan.
Citizens in the pilot zones will have the unique opportunity to purchase tickets for the event using the central bank’s official CBDC app. This marks the first time a major sporting event in China will accept digital yuan as a means of payment, bringing widespread awareness and visibility to the digital currency.
To showcase the digital yuan to international visitors, state-run commercial banks and e-commerce platforms are expected to play a leading role. Meituan, one of China’s e-commerce giants, has expressed enthusiasm for using the digital yuan in “large-scale international sports events,” as it allows them to showcase the development of the Chinese digital economy and inclusive finance to the rest of the world.
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The tourism sector, banks, and retailers believe that the Asian Games present a unique opportunity for the further adoption of the CBDC. They anticipate that the challenges faced by the tourism industry will help improve the functionality of the digital yuan, enabling it to better serve the needs of both domestic and international tourists.
The success of the digital yuan adoption during the recently-concluded Chengdu World University Games has undoubtedly motivated banks and retailers to further promote and prepare for its implementation in Hangzhou. At the Chengdu games, banks issued manuals and instruction guides for using digital yuan hard wallets in multiple languages, and merchants in the athletes’ village upgraded their POS machines to accept CBDC payments.
The central People’s Bank of China’s official CBDC app will be enhanced to allow visitors to the Asian Games to not only purchase tickets but also pay for transport, access event information, and avail themselves of other services. This integration of the digital yuan into various aspects of the event demonstrates its versatility and convenience as a digital currency.
In preparation for the games, rail networks in and around Hangzhou have already been updated to accept CBDC payments, as have metro networks in the host cities. The Industrial and Commercial Bank of China (ICBC) has even released commemorative “Asian Games-themed digital yuan hardware wallets,” making it possible for non-Chinese nationals or Chinese spectators from outside the pilot zone to participate in using the digital currency.
Beyond Hangzhou, the ICBC has been actively promoting the digital yuan in nearby cities hosting Asian Games events, such as Wenzhou. They have been exploring new usage scenarios for the digital fiat and upgrading their bank outlets to accommodate the digital yuan’s implementation. The ICBC is also collaborating with other entities to co-launch a CBDC-powered supply chain financing solution, demonstrating the broader applications and potential of the digital yuan.
China’s push to showcase its digital yuan at the Asian Games signifies its ambition to be at the forefront of the global digital currency revolution. By seizing this international platform, China aims to position itself as a leader in the digital economy, attracting global attention and establishing the digital yuan as a viable and efficient digital currency. The success of its endeavors during the games could ultimately pave the way for broader adoption of the digital yuan on a global scale.
