The Chinese city of Tianjin has reported that its residents and businesses have transacted a cumulative total of over $1.76 billion worth of China’s Central Bank Digital Currency (CBDC), commonly known as the digital yuan, since it joined the digital yuan pilot in 2022. According to Jinyun News, city officials announced that around 302,000 merchants in Tianjin processed the aforementioned amount in a total of 14.97 million transactions.
Tianjin, which is a key port on the northeast coast of China, became part of the digital yuan pilot in April last year along with other cities such as Chongqing, Guangzhou, Fuzhou, and Xiamen. City authorities stated that several state departments had collaborated to promote the digital yuan pilot and claimed to have made significant progress in various sectors. They highlighted the exploration of the digital yuan’s application in financial fund distribution, government tenders, grants, and subsidies. Furthermore, representatives from Tianjin city emphasized that the digital yuan was being used to provide funding to scientific research and development centers and support IT innovations.
Meanwhile, as China faces a worsening property price “crisis,” the central People’s Bank of China (PBoC) continues to actively promote the use of its digital currency. The PBoC aims to increase adoption and has been forming partnerships with banks and businesses that require potential users to open CBDC wallets in order to receive airdrops of the digital yuan. For example, the iconic Dongliu Vegetable Market in the city of Ningbo has recently announced an e-CNY giveaway that allows shoppers the opportunity to receive digital yuan coupons for use at the market. Over 50 merchants in the vegetable market already accept digital yuan payments, and airdrops worth more than $1 will be distributed to shoppers during two consecutive weekends.
According to Chanjiang Daily, shoppers in Ningbo can register their interest in participating in the digital yuan giveaway via the PBoC’s CBDC app. Additionally, the market will feature special booths where eight major banks will guide shoppers on how to open digital yuan wallets. The Dongliu Vegetable Market, established in 1997 and covering an area of approximately 2,700 square meters, has traditionally been popular among Ningbo office workers due to its proximity to the city’s busiest business districts.
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Last month, Ningbo announced its plan to distribute approximately $140,000 worth of digital yuan to around 20,000 residents. The PBoC believes that the micropayments and retail sectors are crucial for achieving widespread adoption of the digital yuan. In line with this belief, the PBoC has partnered with around 200 digital yuan-accepting merchants in Hong Kong, primarily catering to Mainland Chinese shoppers, to further promote the use of China’s CBDC.
The increasing adoption and usage of the digital yuan in cities like Tianjin and Ningbo reflect China’s commitment to developing and implementing its CBDC. Through various partnerships and pilot programs, the Chinese government aims to explore the potential of the digital yuan in different sectors and encourage individuals, businesses, and government institutions to embrace this digital currency. As China continues to drive innovation in the realm of digital currency, it will be interesting to see how the digital yuan develops and impacts the overall financial landscape in the country.
