thecoinrepublic.com
- 1 The country has successfully implemented e-CNY for payroll in Changshu region.
- 2 China will reportedly use digital renminbi in the Belt and Road Initiative.
China’s Central Bank Digital Currency (CBDC) plans are gaining momentum lately. Local media outlets are providing a glimpse over different sectors trying to implement the concept. Recent reports highlight the nation’s energy and healthcare industry are seeing imposition of e-CNY.
CBDC is a Safe And Convenient Payment Means
According to a Chinese local media website, WXRB, the Municipal Mental Health Center in Wuxi region reportedly became the first hospital to use e-CNY for payments. The article highlighted institution claims saying that it is a safe and convenient payment means. Moreover, the service does not necessarily require an active internet connection.
Nation’s official state news agency, New China News Agency, reported that officials in Jiangsu province collected monthly bills for street lights in digital yuan. Recently, the government announced that workers in Changshu county will receive salaries in digital renminbi. China Galaxy Securities, an investment bank, reportedly collaborated with Industrial and Commercial Bank of China (ICBC) for a CBDC pilot program.
China Galaxy Securities President, Wang Sheng, said, “Currently, the company is actively participating in the new phase of capital market financial technology innovation pilots, continuing to enrich the application scenarios of digital renminbi, and gradually building a sound digital renminbi capital market application ecosystem as one of the key objectives.”
e-CNY Remains The Biggest CBDC Project
Although Bahamas became the first country to implement CBDC, e-CNY remains the biggest project globally. Currently, there are over 250 million digital wallets using digital renminbi. The project came to light during the Beijing 2022 Winter Olympics. Former United States Senator, Pat Toomey, asked the officials for an overwatch to assess its impact on U.S. economic and national security interests.
The Dragon is bringing the concept to its Belt and Roads Initiative. The South China Morning Post reported that the government may use e-CNY to pay for charges emerging from storage and transportation of goods across the border. The initiative aims to invest in over 150 nations. Additionally, the project is often compared to the United States’ Marshall Plan enacted during the 40s.
Guangdong, Hong Kong and Macau Greater Bay Area may also test e-CNY for cross-border payments. Xuzhou city is also expected to extend the CBDC’s utility in the region. Many politicians across the globe are not in favor of implementing central bank digital currencies.
Ron DeSantis, Florida governor and 2024 U.S. presidential candidate, is among them. Moreover, he also says regulators do not like the idea of crypto assets as it can take their power away. In April 2023, Harvesh Kumar Seegolam, Mauritian central bank governor, mentioned during the World Bank Community of Central Bank Technologists and International Monetary Fund (IMF) meeting that CBDC was his primary focus upon stepping up for the position in 2020.
In the same month, U.S. Federal Reserve received mixed reviews over a document associated with CBDCs. A user said the poverty stricken population may suffer while another one suggested low transaction fees upon implementation.