The city of Changsha in Hunan Province, China, is stepping forward in the world of digital currency by introducing offline digital yuan “hard wallets,” focusing on a neglected segment of the population – elderly citizens and children. As banks have pointed out, the adoption of digital yuan might face challenges owing to a significant number of individuals who do not own smartphones, particularly in rural areas.
However, Chinese cities and state-run banks are developing and distributing “hard” offline wallets to counter this issue. The city authorities have explained that Integrated Circuit (IC) cards, some 2G phones, wearable devices, and Internet of Things (IoT) devices can also function as hard wallets. These wallets can automatically update balances when they come into contact with internet-enabled devices.
Changsha, along with state-run banks, is working to promote digital yuan adoption in the nearby villages under the city’s governance. As an example, the city has introduced a hard wallet for the village of Guangming. This wallet is “anonymous at the time of issuance” and features a “unique hard wallet number and stores digital yuan certificates” on a password-protected security chip.
An official from the Hunan Province Branch of the China Construction Bank revealed that these hard wallets permit users to make payments up to $700, with the primary aim to enable villagers to make password-free “micropayments.” The official further clarified that the “password-free limit for a single transaction is [approximately $70].”
The city is focusing on inclusivity in its efforts to encourage digital yuan adoption. A 60-year-old villager from Guangming, surnamed Huang, shared his successful experience applying for a digital yuan hard wallet and making a payment at a local store that offered discounts on the digital yuan. Huang expressed his delight, stating, “It’s so convenient!”
Changsha has committed to enriching “innovative application scenarios” in the city and its surrounding region as the pilot progresses. Furthermore, last week witnessed Chinese charities starting to accept digital yuan donations from businesses and individuals. Jiangsu Province’s welfare administrator opened an “online corporate and personal digital yuan donations platform.” Additionally, the digital yuan has reportedly made strides in the corporate loans sector, with IT firms receiving bank loans via digital yuan wallet transfers.
Source: Cryptonews
