China has launched a pilot central bank digital currency (CBDC) test program that allows citizens in the city of Guangzhou to make payments using digital yuan (e-CNY) while riding public buses on 10 transit lines.
Therefore, passengers need to deposit funds into the e-CNY application to scan the QR code provided at the bus payment section.
Meanwhile, Ningbo is the ninth Chinese city to implement a pilot test of e-CNY at 125 subway stations, where passengers only need to scan to make payments.
Hence, the payment of workers' housing fund contributions in the city of Guangzhou was successfully made after the Chinese government actively expanded the utility of e-CNY.
In this context, the government has previously also collaborated with the largest food delivery company Meituan as well as the e-commerce platform JD.com to create e-CNY air-drops.
The aim is to revive consumer spending after facing tight coronavirus restrictions.
As a result, more than 6 million users have ordered services with e-CNY in Meituan, and JD.com has also processed more than 4 million e-commerce transactions worth 900 million CNY ($131.6 million) since accepting e-CNY as a tender in the country.
