China tests e-CNY for public transport fares
China is testing the digital yuan in full swing, offering citizens more and more options to test the "popular cryptocurrency". The Beijing authorities intend to partially introduce digital currency into use by the 2022 Winter Olympics.
This time, the turn came to testing e-CNY in the context of the transport system of the capital of the southwestern province of Sichuan, the city of Chengdu. Local authorities announced that they have completed the installation of payment systems by introducing digital yuan payment in all types of public transport, from buses to subways.
The service will be available to at least 16 million Chinese people who have installed the Tianfutong application on their mobile devices, created by the Chengdu authorities. A little later, the capital of Sichuan was joined by the cities of Suzhou and Beijing, whose departments announced that their residents will also be able to pay for public transport using e-CNY.
In Suzhou, the recently opened subway line 5 was allocated for testing. Residents will be able to pay for the fare through an application with an e-CNY wallet. In Beijing, however, the authorities ordered that the ability to pay in digital yuan be available on all 24 subway lines and 4 train lines. However, only ICBC clients who have downloaded a mobile application with an e-CNY wallet will be able to test the service here.
In total, China has already conducted more than 13 rounds of large-scale testing of its CBDC but is still not ready to announce the official launch of the digital yuan. But, one way or another, the local government holds a confident leadership in the international race of national stablecoins.
In the future, the country's authorities intend to internationalize the digital analog of fiat, hoping that it can compete with the dollar as a reserve and trading currency.