The sleepy town of Likou, nestled within Siyang County adjacent to the metropolis of Suqian in China‘s Jiangsu Province, may soon morph into a high-tech hub as it has agreed to serve as a “demonstration town” for the digital yuan, or CBDC. This ambitious plan unfolds in the wake of a key pact signed between the town’s local government and the Likou Branch of the Postal Savings Bank of China. While specifics regarding the execution of this project remains under veils, high hopes grace the announcement as the digital yuan is set to provide efficient, convenient, and safe services for the general public and local businesses.
Given its history as an advocate for the digital yuan, the bank will lead efforts in this initiative, staying true to its digital financial inclinations. By proposing solutions such as offline and hard wallet technology, the bank intends to eradicate the need for internet-affiliated smart mobile devices. This objective seemingly aligns with the People’s Bank of China’s intent for the digital yuan, expecting it to be the panacea for their unbanked population woes. A study by Merchant Machine in 2021 reveals a stark contrast between China, with 20% of its population unbanked and an internet penetration rate at a mere 54%, and its neighbor South Korea, which boasts a minute 5% unbanked populace and a staggering 95% internet accessibility.
The metamorphosis of Likou town will not be limited to the simple digitization of its currency; it promises to embrace an array of green and smart city technology. The end-goal revolves around creating a specialized digital yuan community, setting a precedent for various towns eager to supplement their financial systems with this digital coin.
It’s not just in sleepy Likou where digital yuan gains momentum. Jiangsu Province is already home to multiple markets that played host to digital yuan promotional events, as stallholders offered incentives to CBDC-paying customers. Being a fresh initiative, these markets initiated acceptance of CBDC payments only last year.
In conclusion, the looming digital yuan revolution isn’t entirelly devoid of scepticism. The central bank’s push for digital yuan in the transport and retail sectors to foster micropayments adoption has raised eyebrows. Whether this strategic plan will successfully traverse the path from inception to execution, while fulfilling its lofty promises, remains to be seen. This ambitious venture stands as testament to the swiftly evolving technological landscape, pushing boundaries and shaping a future that is as ambitious as it is uncertain.
Source: Cryptonews
