The rise of the digital yuan in China continues with breakthroughs in the healthcare and energy sectors, which now allow patients and customers to pay with the nation’s central bank digital currency (CBDC). According to Chinese media outlet WXRB, outpatients and hospitalized mental healthcare patients can use the CBDC to pay for medical treatment, deposits, medication, and hospitalization fees via the central bank’s digital yuan app.
Hospital staff reportedly said that digital yuan payments offer “safer and more convenient form of smart payment,” as they proved to be faster and helped improve the medical experience for patients. Staff members also explained that the CBDC would facilitate “medical reform” and digital transformation within hospitals.
In 2021, the nation’s first digital yuan hard wallets were piloted at the Shanghai Jiao Tong University School of Medicine’s Tongren Hospital staff canteen, marking another stride toward its wider adoption in the healthcare sector.
Meanwhile, in the energy sector, Jiangsu Province government organs recently used the digital yuan to settle their most recent electricity bill for municipal street lamps. This payment, provided by the government-run State Grid Jiangsu Electric Power Co., a local branch of the State Grid Corporation of China, serves over 46 million energy consumers.
While the digital yuan has found a range of applications in the world of retail payments and business-to-business transactions, inter-government payments have remained relatively unexplored. However, China’s recent initiative demonstrates a “national first” for public institutions, according to the news agency Xinhua.
Last week, the China Securities Regulatory Commission (CSRC) approved the CBDC for use in the securities market, a development that means Chinese investors will soon be able to use the digital yuan to pay for wealth products such as funds.
Despite these advancements, the digital yuan’s rapid expansion raises questions regarding privacy concerns and the potential centralization of financial control. As China pushes forward with its CBDC, it’s crucial to strike a balance between providing a seamless digital payment experience and ensuring transparency in transactions.
Source: Cryptonews
