In Beijing, China’s dynamic capital, government leaders have announced an ambitious goal to introduce new digital yuan applications and play a pioneering role in the universal acceptance of the Central Bank Digital Currency (CBDC). Among attendees at the Global Digital Economy Conference Digital Finance Forum was Zhao Wei Jiu, Deputy Director of the Beijing Local Financial Supervision and Administration Bureau, who provided insights into these plans.
Highlighting Beijing’s strong commitment to fostering the digital metamorphosis within the financial industry, Jiu indicated that the progressive city, being a national financial management center, regards the growth of digital finance as a top priority. The digital yuan, being key to achieving these outcomes, is expected to find its home in a diverse array of application scenarios.
Development coordination with other cities is also a part of Beijing’s plan, as well as striving for innovative applications of digital technology to promote inclusive finance. Moreover, it anticipates to expand in the area of cross-border financial services. But what is the current situation of Beijing’s digital economy? It contributes to over 40% of the city’s financial productivity, and the financial sector, enjoying a steady growth, makes up for more than 20%.
While Beijing’s CBDC ambitions are not to be underestimated, one cannot overlook the other Chinese cities preparing to adopt the digital yuan. As the spotlight shifts to Hangzhou, host of this year’s Asian Games, the city’s preparedness to welcoming digital yuan transactions is commendable. It includes digital yuan-related showcases and multiple hotels accommodating participants that have made provisions for digital yuan payments.
In preparation for the Games’ dragon boat races, Wenzhou, a nearby city, has ensured that its hotels, transport networks, and major merchants all accept e-CNY transactions. The increasing adoption of CBDC is evinced in the opening of 165,100 corporate digital yuan wallets in Wenzhou, alongside with 4,371,200 personal CBDC wallets.
This ambitious undertaking of CBDC implementation all across China is no smooth road and comes with its fair share of obstacles. Nevertheless, the potential widespread application of the digital yuan signals a promising drive toward financial digital transformation, changing the way citizens and corporations transact in the world’s most populous nation. A successful execution could set a powerful precedent for other countries, thereby redefining the global financial landscape.
Source: Cryptonews
