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Beijing Rail Embraces Digital Yuan Payments

Beijing subway has officially launched a new program that allows passengers to pay for rides with the central bank digital currency (CBDC) also known as the digital yuan. Find out more about China ‘s digital yuan below.

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The news follows the subway system in East Chinaโ€™s Jiangsu province in the city of Suzhou which also allows digital yuan payments for subway fares.

 

Digital Yuan Can Now Be Used to Pay for Fares on Chinaโ€™s Major Public Transport Railways

Chinaโ€™s capital of Beijing and the Peopleโ€™s Bank of China (PBOC) has been moving fast in regard to pushing CBDC adoption in the country. Thereโ€™s been a bunch of red envelope lotteries giving the digital yuan away to citizens, 3,000 automated teller machines (ATMs) now allow digital yuan withdrawals in Beijing; subcontractors are being paid in the CBDC in Chinaโ€™s Xiongโ€™an New Area, and Hong Kong is connecting with the CBDC.

On top of all that, JD.com employees have been paid in the digital yuan, and firms like Mastercard, Ant, Tencent, and Alibaba have been engaging with the CBDC as well. Rumor has it that Chinaโ€™s digital yuan smart card will be very advanced, featuring biometrics and fingerprint scanning. Now the central bankโ€™s digital currency is invading Chinaโ€™s subways, as customers in Suzhouโ€™s and Beijingโ€™s subway rails can pay for fares with the CBDC.

Theย official announcementย stemming from Beijing explains that the cityโ€™s subway operator aims to make the CBDC fuel the โ€œnew digital travel experience.โ€ Aย regional reportย from the Global Times says the digital yuan is accepted at 24 subway railway lines and four suburban railway lines in Beijing. The report discussed the new service with a Beijing Municipal Commission of Public Transport customer service representative.

โ€œYou need to download a mobile app that is linked with your bank account to access the service,โ€ the representative stressed.

The railway line 5 in Suzhou was the first subway system in China to start accepting the digital yuan. According to the Global Times, local reports say that Chengdu has finished integrating the CBDC system and aims to support the digital yuan in public transport soon.

Despite all of the aforementioned digital yuan announcements made this year, itโ€™s still hard to estimate how much adoption is really happening. A report published in mid-May showed that the CBDCโ€™s alleged hotspot in Shenzhen was not seeing widespread acceptance. The same could be said for Nicolas Maduro and Venezuelaโ€™s Petro, which saw a variety of government-produced adoption announcements.

Widespread petro (PTR) acceptance in Venezuela is extremely lackluster to this day even though the Venezuelan government announced that โ€œthousandsโ€ of merchants would accept PTR and people would get government payments in petro as well. With Chinaโ€™s communist government and massive internet firewall, itโ€™s really hard to say whether or not the digital yuan is really thriving.

 

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Driven by wanderlust and a passion for tech, Sandra is the creative force behind Alertify. Love for exploration and discovery is what sparked the idea for Alertify, a product that likely combines Sandraโ€™s technological expertise with the desire to simplify or enhance travel experiences in some way.