Energy providers in China are embracing the use of digital yuan as a payment option, allowing individuals and companies to settle their bills using the country’s central bank digital currency (CBDC). This move is being spearheaded by the State Grid Corporation of China (SGCC), the biggest power provider in the country and the third-largest in the world.
One recent example of this adoption can be seen in the city of Suzhou’s Xiangcheng District, where drainage and sanitation companies utilized digital yuan to settle a power bill of around $83,000. To support this effort, the SGCC’s Xiangcheng District affiliate, the local finance bureau, and the city’s business support center have established a working group that aims to assist corporate users and local government organs in settling their bills using the CBDC. This group is also focused on expanding the application scenarios of the e-CNY (digital yuan) in the energy sector and enabling customers to use digital yuan for power payments.
It is worth mentioning that state-owned public utility providers are actively involved in this adoption drive and are committed to helping individuals and businesses understand the differences between traditional and digital yuan payment methods. They also plan to organize workshops to provide in-depth explanations of CBDC payment processes.
In addition to companies in the energy sector, other businesses and organizations are also embracing the use of digital yuan. The Suzhou Chuangtai Alloy Materials Company, a local metals firm, recently used its digital yuan wallet to pay an electricity bill of approximately $73,000. The SGCC’s local office has also pledged to achieve full coverage of digital yuan energy payments in the city.
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Furthermore, the city of Zhangjiakou, which hosted events during the 2022 Winter Olympic Games, is set to introduce various digital yuan applications. Facilities that were previously used for the Olympics will be repurposed for the leisure sector, allowing visitors to make payments for goods, facility usage, and other services using the CBDC. This initiative extends beyond Olympic venues, as a range of businesses in Zhangjiakou, including supermarkets, farmers’ markets, and restaurants, will begin accepting digital yuan payments. Additionally, the city’s pension systems, trade union branches, and housing agencies will adopt IT solutions enabling e-CNY payments.
The adoption of digital yuan is not limited to the energy and leisure sectors. The Chinese Ministry of Human Resources and Social Security recently expressed its intention to explore and promote projects that incorporate digital yuan payment functions into citizens’ social security cards. Moreover, China has been conducting pilot programs for network- and electricity-free CBDC payments on public transport networks.
Overall, the integration of digital yuan as a payment option demonstrates China’s commitment to advancing its CBDC project. By expanding the applications of digital yuan across various sectors, the country aims to enhance financial inclusivity, streamline payment processes, and promote the adoption of digital currencies.
