According to various reports, on Tuesday, August 23, China entered the next phase of the pilot test for its central bank digital currency. The public transport system in the city of Guangzhou now accepts digital yuan (e-CNY) payments for bus fares.
- Guangzhou Transportation launched a digital RMB payment code that residents can use to pay for rides. Passengers first need to download the Digital RMB app and fund their accounts. Then they can simply scan the QR code displayed in the bus payment section to pay their fares.
- Reportedly, 10 of Guangzhou’s bus lines have incorporated the new feature. These 10 bus routes run through some of the city’s well-known tourist spots. However, officials have shared plans to expand the range later on.
- While Guangzhou is the first to debut e-CNY payments for bus rides, subway systems have offered the function for a while. Just before the Guangzhao announcement, the city of Ningbo became the 9th in China to launch e-CNY payments in its subway system. Subway passengers can now use the digital yuan to pay for rides at 125 stations in Ningbo.
- China has continued to swiftly unveil new use cases for its central bank digital currency. About a week ago, Guangzhou enabled residents to pay for employee house funding contributions using e-CNY.
- To improve consumer spending after the lockdown period, Chinese authorities joined forces with food-delivery company Meituan and e-commerce firm JD.com. The partnership saw them roll out e-CNY airdrops and allow holders to spend the funds at specific locations.
- According to data from June regarding the move, more than 6M unique individuals had spent their e-CNY funds on Meituan’s services, with 900M CNY ($131.6 million) spent so far. This came after the platform opened its doors to digital yuan payments.