China got into the CBDC way earlier than any other nation out there. They used this during the post pandemic times. And they have managed to get the payment transaction on ledger. And also the use cases are slowly increasing.
China seems to be pushing their Digital Yuan in the places around the nation which includes the internet transaction, local transaction and also the payment systems that are connected to other nations. Which is kind of early for china as rest of the world is yet to catch up.
Recently China tested one of the CBDC pilot in one of the events - Asian games. And turns out the pilot was successful and the CBDC got into the circulation. You can also expect this would be available with the online portals, ecom and the stores online too.
So let's talk about the Digital YUAN.
Image Credit: ChinaDaily
Asian Games Testing
This month there were plenty of asian games.And the nations from the world come out for the play. And it was a good option for the people to test out on the digital payments. So the CBDC was given to the set tested people and they wanted to get into the testing.
Players were told to create the account in the downladed app. They were asked to import the funds and then the CBDCs were used to transfer from the place to another. And the payments were done through QR code and the email based UPI like address. And that is one of the good successful test for the China.
Interconnection with the Hong Kong Banking System
Hong kong banking is the one that is intended to connect the banking account and the funds transfer through the digital means. And this is where the CBDC is going to come into the picture. And most likely the forex is working well on that front.
In near future you can see that Hong kong bank would connect singapore, US and other banks. And the CBDC with the SWIFT would get into the motion for working. I am sure this would mean that things would be more centralized and even the international ledger based chains would come.
China is getting serious and we can expect them pushing the CBDC through their friendly nations. I won't be surprised if the YUAN reaches in the Russia, North korea and other friend states of the china. We have lot of interesting things to see where Digital Yuan comes into the use case.