The forthcoming Asian Games in China are set to birth larger than sport fanfare. Preparations are in full gear with an interesting plot twist in the mix. The city of Shaoxing is strategizing on an impressive monetary gesture, rolling out an Asian Games-themed digital yuan giveaway in a bid to exhibit the country’s advancement in central bank digital currency (CBDC). In lieu of this, residents stand a chance to benefit from about $5.6 million worth of digital yuan tokens courtesy of this audacious event tagged “Welcome to the Asian Games.”
Supermarkets, hospitals, and transport providers in the city are leveraging the digital yuan payment functions which is fast becoming a preferable option for many locals. Their payment method of choice – the digital yuan app’s QR codes, underlines the acceptance and versatility of this innovative payment system.
However, there’s a catch to this show of digital monetary might. The focus city isn’t Shaoxing but Hangzhou, which is similarly located in Zhejiang Province like Shaoxing. Though earmarked to host the event last September, the troublesome outbreak of the coronavirus pandemic gave rise to a one-year delay. Meanwhile, Shaoxing isn’t entirely left out as she poses as the host for five Asian Games events ranging from baseball, softball to volleyball.
What is more interesting is the central People’s Bank of China (PBoC) drive to make the digital yuan integral to metro payments. The Hangzhou Metro and Shaoxing’s metro system have both been improved technologically to accommodate the digital yuan. Abiding by this trend, rail links binding the two cities now embrace CBDC-paying passengers.
On the flipside though, it appears that the PBoC is angling for spots of enhanced adoption in the province before the game parade ensues on September 22. Fast on this pursuit, the Shaoxing Municipal Bureau of Finance plans to perform a lucky draw-type event via which the tokens will be disbursed. Residents will receive a $14 worth of the digital currency, but of course, digital yuan wallets and registration as a resident of Shaoxing are prerequisites.
Interestingly, this isn’t China’s first attempt at playing on the digital field. Earlier this month, an alliance between the China Merchants Bank and the Civil Aviation Administration Clearing Center culminated in the dual launch of a CBDC platform. This innovative platform gears enterprises towards using the digital yuan for paying business air tickets. Could all these point to a spike in embrace for the digital yuan? Only time will tell.
Source: Cryptonews
