The former Governor of China’s central bank, Dai Xianglong, has insisted that China needs to “lead the world” in CBDC adoption, as the nation’s digital yuan pilot continues. China is hoping to de-dollarize much of its trade sector and wants international partners to step up their use of the yuan.
The Benefits of CBDC Adoption
The move to adopt a Central Bank Digital Currency (CBDC) is seen as crucial in transforming the yuan into the most stable currency. According to Dai Xianglong, being at the forefront of the world in the application of digital currency technology would help China globalize the yuan. This would not only solidify China’s position as a global economic powerhouse but also enable it to reduce its reliance on the US dollar in international trade. Nations like Russia and Argentina are already embracing the yuan for their imports from China, and further expansion plans are underway in Singapore and Taiwan.
Efforts to Boost Digital Yuan Adoption
Chinese cities and provinces have been actively promoting the adoption of the digital yuan. This includes the establishment of digital yuan “experience zones” in public spaces. These designated areas allow citizens to explore the functionalities of a CBDC wallet, conduct transactions, and experience the convenience of using digital currency firsthand.
- The Zhongshan Branch of the People’s Bank of China has partnered with the Zhongshan Financial Affairs Bureau and the Guzhen People’s Government to launch an e-CNY cabin in downtown Guzhen.
- In these cabins, visitors can “purchase” Nongfu Spring mineral water for 0 yuan, showcasing the ease and benefits of digital transactions.
- Additionally, visitors can enjoy a cup of freshly ground coffee for just $0.001 or avail of a 10% discount when using the e-CNY at vending machines.
These initiatives not only encourage domestic adoption but also provide an opportunity for visitors to experience the advantages of digital yuan transactions. China’s commitment to developing and promoting CBDC adoption highlights its determination to lead in digital currency technology and globalize the yuan.
“Being at the forefront of the world in the application of digital currency technology would help China globalize the yuan.” – Dai Xianglong
