Photo taken on Oct. 12, 2020 shows a sign reminding customers that digital yuan is accepted at a supermarket in Shenzhen, south China's Guangdong Province. (Xinhua/Wu Yanting)
BEIJING, Jan. 18 (Xinhua) -- South China's city of Shenzhen in Guangdong Province, one of the first batch of cities to pilot digital yuan in China, has recently issued another 20 million yuan (about 3.09 million U.S. dollars) in 100,000 red packets, part of a larger scale pilot program in 2021.
Compared with the first round of pilot program in the city last October, this round of pilot program has doubled the number of red packets and the total amount of digital yuan, and expanded using scenarios with more types of vendors involved.
"Citizens who won the red packets last October can pay with digital wallet only in Luohu District, but this round of pilot program has covered all districts in the city, with the number of vendors involved growing from about 3,000 to 11,000. Apart from restaurants and retail stores, the digital currency can be used in more scenarios, such as transportation, education, fitness and healthcare," said a fintech expert with the Shenzhen branch of China Construction Bank (CCB).
Generally, consumers and vendors are happy with the new payment method since it is convenient for transactions and settlement.
Vendors has encouraged consumers to pay with digital yuan as the payment method allows real-time transactions without any commission fee.
The new payment method, as handy as other online payment tools such as Alipay and Wechat payment, is also welcomed by consumers due to all kinds of incentives and its government-backed background, according to analysts.
Commercial banks also eyed the business. In the second round of pilot program in the city, two more banks, Bank of Communications (BCM) and Postal Savings Bank of China, have jumped on the bandwagon to seek opportunities of the new payment tool, competing with another four state-owned banks.
Other banks have also paced up efforts in the field. Agricultural Bank of China (ABC) has set up a research lab for digital yuan in Shenzhen to explore more possibilities in the field. The local branch of Industrial and Commercial Bank of China (ICBC) has allowed the public to sign up and apply for a digital wallet.
According to the People's Bank of China (PBOC), the country's central bank, about 50,000 scenarios for digital yuan had been established as of last December, covering a variety of fields, including catering, transportation, shopping, household bill payment and civic services.
China has already gained some experience in the fast-developing digital era. The digital yuan pilot unfolded in eastern Chinese city of Suzhou last December with a total of 20 million yuan allocated, after feasibility and reliability had been proved in Shenzhen's first pilot last October, in which 10 million yuan was issued to 50,000 lucky residents.
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
A single purchase
