China’s Innovative CBDC Metro Payments: Power- and Network-Free Pilots Signal a New Era

Quingdao, China is set to become the first city to pilot an electricity- and network-free digital yuan public transport payments solution, marking a major milestone for the Central Bank Digital Currency (CBDC).

Qingdao, a city in China, is set to become the first in the nation to pilot an electricity- and network-free digital yuan metro payments solution. The pilot will launch at two stations on Qingdao’s Metro Line 4, Zhangcun Station and Keyuanjing 7th Road. Additionally, another city in the pilot zone has announced it will give away $140,000 of CBDC discount tokens. A significant milestone for the CBDC, gaining traction in the country’s financial landscape. The pilot program aims to provide commuters with a more convenient and secure payment option, while also working towards promoting the wider adoption of CBDCs.

Powered-Down Smartphones as “Hard” Wallets: A Breakthrough in Digital Yuan Implementation

The Digital Currency Research Institute of the People’s Bank of China (PBoC), along with the Qingdao Municipal Transportation Bureau and the Qingdao Metro Group, is launching a pilot project to enable digital yuan payments for transport fees. The funding for the project comes from the Bank of China, China Telecom, China Unicom, and Digital Finance Public Service. Customers can pay transport fees using powered-down mobile devices via near-field communication (NFC) technology. The pilot project is a significant step in digital yuan development, potentially leading to broader adoption.

PBoC’s pilot program on June 20th allows users to use powered-down smartphones as “hard” wallets for metro ticket payments. Users need to add their SIM card details to their digital yuan wallets for the new solution utilizing NFC technology. Users can tap their powered-down smartphones on the ticket gates, and the system will automatically deduct the corresponding amount from their wallet balances. The pilot program for the digital yuan is a significant step towards transforming public transportation payment methods.

China Accepts CBDC Public Transportation Payment – What’s Next for e-CNY?

The city of Ningbo in China is giving away around $140,000 worth of coins in “lucky red” digital envelopes. 20,000 envelopes will be handed out, each containing up to $11 worth of tokens. Recipients can get discounts when they spend $14-28 worth of digital yuan with local merchants. China is hosting an event from June 21 to June 24 to distribute CBDC coins and coupons. China aims to boost the adoption of its digital yuan and promote digital payments by implementing this measure.

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

Previous articleBiden Engages with AI Experts to Address Risks and Ensure Responsible Use
Next articleCurtains Closing: Wyre Shuts Down After Years of Cryptocurrency Market Struggles
Kassidy Florette
Kassidy followed her friends to buy her first Bitcoin in 2015, has been participating in various projects since 2019 as a marketing communication lead. Her knowledge and passion brings her in as a contributor.