Today onwards, Meituan will start airdropping Digital Yuan “red packets” worth 10 yuan ($1.55), to promote low-carbon travel. According to the Chinese financial news site, cnstock.com, starting today, till December 31, the Meituan app users are eligible for receiving free airdrops.
The Digital Yuan red packet can be acquired through a simple keyword search on the Meituan app, along with the process of registration. The money can be further utilized for the platform’s bike-sharing service payments. Additionally, the red packet allows multiple procurements upon continuous usage of Meituan’s services.
Digital Yuan to promote nation’s carbon neutrality aim
This Digital Yuan Red packets’ trail to enable to use of CBDCs is a collaborative effort of, Meituan, Agricultural Bank of China, China Postal Savings Bank, and China Construction Bank for residents in nine regions, including Beijing, Shanghai, the Xiongan New Area, etc. These regions will be able to earn Digital Yuan along with promoting the nation’s carbon neutrality aim by enabling the first step, i.e., integrating the use of low-carbon travel in daily life.
“Our vision is to use low-carbon travel as a breakthrough and take advantage of the unique technology of digital yuan to incorporate the concept of the nation’s carbon neutrality goal to users’ daily life so that users can experience the convenience of consuming with digital yuan while enhancing their awareness of and participation in carbon emission reduction,” cnstock.com reported, citing a senior employee at Meituan.
Digital Yuan to Centralize Virtual transactions in China
China’s focus on implementing its CBDC has multiplied since its announcement of winding up the nationwide crypto crackdown. With its Digital Yuan, China aims to reduce the dependency on U.S. Dollar, along with dominating the global digital money markets. Especially now, after its latest victorious declaration about the completion of the nationwide virtual currency transactions crackdown. The Chinese government appears nearing its goals of centralizing the digital money sphere in the nation.
“Online asset management, equity crowdfunding, Internet insurance, virtual currency trading, internet foreign exchange trading, and fields have basically completed the rectification work and have been transferred to normalized supervision.”, stated the People’s Bank of China.
China ponders launching a digital yuan-based exchange in Beijing
- China is thinking about launching a digital asset exchange platform in Beijing.
- The exchange platform has a specific aim of promoting the use of digital Yuan.
- Efforts to speed up the creation of Central Bank Digital Currency are high, with players working around the table to achieve it.
People’s republic of china is thinking about putting up an exchange for trading digital assets in Beijing. Apart from trading on virtual assets, the exchange aims to promote the use of the digital Yuan.
Recently, there has been a speedup of efforts to develop its Central Bank Digital Currency. For example, the executive has directed quicker trials. Also, they have forced financial institutions to put up relevant structures with firms.
A digital yuan for digital dominance
China has a plan to become the blockchain powerhouse within five years. So, a digital yuan is among the latest efforts to achieve this ambition. The country aims to Nationalize the industry by banning private cryptocurrency. Instead, they are encouraging the adoption of the digital Yuan.
At the beginning of the year, CHN gave some guidelines for blockchain development. The board of industry and information technology. And the Cyberspace Affairs office gave the guidelines. The directive aims to make china’s blockchain the most vibrant worldwide. Their game plan to achieve this was simple. They felt mixing blockchain into the country’s economy would lead them there.
The move shows the motive of China’s efforts to ban cryptos and related actions within its borders. China had the highest hash rates when it came to crypto mining. Yet, the government banned every crypto-related activity.
Besides, the Peoples Bank of China also gave another order on cryptocurrencies. They banned any business involving cryptocurrency operating in mainland China.
Moreover, it blocked all firms dealing in crypto. Thus, it left no room for any investor around the enterprise. To seal crypto’s fate, China’s National Development and Reform Commission also blocked crypto mining.
China wants its digital legal tender
The journey of creating a Chinese digital version of legal tender has been ongoing. The process is almost seven years. Over the past year, China has been doing several trials in several cities. The trial aimed to encourage the use of digital Yuan between traders and their clients.
Despite negative feedback from the trials, the authorities are not relenting. The process is kept in motion without holding even the most minor advice from other quarters. So far, the Chinese authorities are planning to roll out the project en masse. The government is being strategic with the launch. They are settling to launch the digital Yuan during the winter Olympics in Beijing next year.
The launch of a digital yuan-based exchange will be a tremendous blockchain advancement. It would open up CHN to the world’s four quarters, making them handle business with no worries.
China’s determination to dominate the blockchain industry is incredible. Already they have a roadmap of being there. But, time will tell if they will succeed.
China all set to establish digital asset exchange digital yuan
The latest news about China’s decisions over central bank digital currency shows that plans are very serious about using government-backed digital assets.
The news comes some months after the Chinese government banned many operations regarding cryptocurrencies. But it seems the government is very serious in replacing the digital currency operations with a CBDC.
Although the operation of cryptocurrency exchanges is banned in China, new digital currency exchange is planned to be launched in the country. It will be launched in Beijing to promote the usage of digital yuan and to trade it. The new government-backed exchange will focus on digital Yuan, and it seems to be a competitor to cryptocurrency exchanges. According to Bloomberg:
“Beijing will explore the possibility of establishing a bourse for digital assets trading, as part of broader efforts to boost financial services in the capital, according to guidelines issued by the State Council.”
China was the first country to announce plans for a central bank digital currency. Although the government has many problems with digital assets, and especially cryptocurrencies, it developed plans to promote the usage of digital currencies if they’re backed and controlled by the government.
CBDCs are a form of digital currencies that are very different than cryptocurrencies. They focus on providing financial services to more people with the usage of fully digital infrastructures, somehow eliminating the cash. But these currencies are backed and controlled by governments and state banks. In simple terms, a CBDC is fiat money that leverages some of the technologies of blockchain but isn’t necessarily decentralized.
The Chinese cabinet has serious plans to force the usage of digital Yuan. Big banks are urged in the country to set up e-CNY operation firms. There are no details available about the plans for the announced digital exchange. But it seems the exchange is going to be something only focused on digital Yuan. Crypto enthusiasts can’t be optimistic about this plan, and there is no sign that cryptocurrencies will be allowed in this exchange.
There are many headlines about China’s plans to promote the usage of the digital Yuan. The plans started as pilots in small cities and retailers. Merchants and retail receptions were the first to start the pilot program. It seems a broader plan is ready to be run in Winter Olympics in February. There were rumors about the Chinese government urging even foreign countries to accept e-CNY. But we should wait and see what all these plans result in and if e-CNY can be the first successful CBDC.
Breaking: China May Set Up CBDC Exchange to Push Digital Yuan Use
The latest update in China’s financial ecosystem saw the authorities make yet another attempt to push its Digital Yuan’s use, this time around by setting up a digital asset exchange in Beijing.
According to Bloomberg, the guidelines issued by the State Council point towards Beijing’s plans to look into establishing a bourse aka exchange for digital assets trading in lieu of boosting financial services in the capital. While the cabinet aims to speed up the nation’s Digital Yuan trials along with appealing banking giants to set up e-CNY operation firms, but there’s still no clarity about the details of the planned digital asset exchange as of now.
China Puts Blind Faith in its CBDC
Amid China’s fight against unregulated cryptocurrencies in the nation, as well as the authorities’ attempt to provide an alternative to decentralized digital currencies with its centralized digital yuan, there appears to be a lot going on in the country. One of China’s main reasons to implement a nationwide crypto ban was “consumer protection” given crypto’s unregulated nature. However, earlier this month, the nation’s authorities were presented with its first-ever CBDC scam. The Xinmi Police arrested 11 suspects in the Fujian Province for illegally using digital Yuan to launder money. The authorities disclosed that China’s CBDC was being used as a medium to further launder money for an overseas fraud group hiding in Cambodia in the scam.
Nevertheless, Chinese authorities assured the public that they’d ascertain this remains an isolated incident by improving the privacy protection and anti-counterfeiting features of Digital Yuan. Furthermore, the authorities guaranteed to increase Digital Yuan’s interoperability with existing payments tools.
Along with strengthening the security system, the Chinese authorities have decided against halting its CBDC trials. The PBOC governor, Yi Gang spoke remotely at the Bank of Finland event, regarding the authorities’ plan to improve the design and usage of Digital Yuan and reinstated the country’s determination toward its expansion and advancement.
“Going forward, we will continue to prudently advance R&D of eCNY, improve its design and use.”, said Yi.