BEIJING—China has formally launched the second phase of its central bank digital currency (CBDC) pilot test.
It is now possible for Chinese citizens to pay for public transportation using the digital yuan (e-CNY) CBDC on 10 transit routes in the city of Guanzhou, which is a first for the nation, according to Cointelegraph. Passengers can do this by downloading the e-CNY app, making a deposit, and paying for their travel by scanning the QR code found in the bus payment area, Cointelegraph reported.
Ningbo is the ninth Chinese city to introduce the e-CNY pilot test in its subway lines, allowing users to pay for their trips by just scanning their tickets.
According to Cointelegraph, this year the e-functionality CNY’s has significantly increased. In the city of Guangzhou, it was recently made feasible to use the CBDC to make employee housing fund contributions.
Collaboration With Food Delivery Co.
The report added that the government collaborated with the food delivery industry’s Meituan and the e-commerce platform JDcom to develop e-CNY air-drops that can be redeemed at designated locations in an effort to boost consumer spending in the face of stringent coronavirus lockdowns.