China begins next phase of CBDC testing with e-CNY payment for public transport

Scan and Pay with e-CNY is now available in several Chinese cities for citizens wishing to take their local buses and subways.

New

According to multiple sources, on Tuesday China officially began rolling out the next round of its central bank digital currency (CBDC) test pilot program. In the city of Guanzhou, it is now possible to pay for public bus rides with the CBDC in digital yuan (e-CNY) on 10 transit routes, which is a first for the country. To do this, passengers simply need to download the e-CNY app, deposit funds and scan the QR code located in the payment section of the bus to pay for their ride.

Similarly, the day before, the city of Ningbo said that passengers can now pay for subway rides at 125 stations with e-CNY. Ningbo is the ninth city in China to roll out the e-CNY pilot test in its subway lines, where passengers can simply scan and pay for the ride.

The Chinese government has rapidly expanded the usefulness of e-CNY this year. Just last week, it became possible to pay Guangzhou City Employee Housing Fund contributions with the CBDC. To revitalize consumer spending in the face of strict coronavirus lockdowns, the government has teamed up with food delivery giant Meituan and e-commerce platform JD.com to create e-CNY airdrops that can be spent at the locations listed.

In its latest data update dated June 20, more than 6 million unique users had ordered services with e-CNY funds on Meituan. Meanwhile, in July, JD.com said it had processed more than 4 million e-commerce transactions worth an estimated CNY 900 million ($131.6 million) since it began accepting e-commerce. 'e-CNY as tender. Approximately $830 billion ($121.4 billion) of e-CNY transactions were recorded in the first five months of 2022.