![]() ![]() Is the digital yuan being used at the Beijing 2022 Winter Olympics?Ĭhina has made the digital yuan available for foreign visitors at the Winter Olympics and Paralympics. Foreigners can also only use the lowest level wallet functions in the digital yuan app, which has a RMB 5,000 (£582) daily and RMB 50,000 (£5,837) yearly spending limit. Most importantly, they must be located in one of the 12 pilot cities or areas and have a bank account at one of the approved Chinese banks. As the e-CNY has the same value as the physical RMB, this remains an option for foreign investors looking to buy RMB.įoreigners are, however, able to use e-CNY through the digital yuan app, 数字人民币 shuzi renminbi, with a few caveats. However, there are channels through which foreigners can buy and trade in physical RMB – such as buying RMB in cash or buying RMB currency futures. This allows users of Alibaba’s food delivery app ele.me, grocery delivery app Hema Fresh, and e-commerce platforms Taobao and Tmall, to pay for orders using the e-CNY – even though the digital currency is a direct competitor to Alibaba’s payment platform, Alipay.Īt the moment, non-Chinese citizens are not able to buy e-CNY. In May 2021 it was also announced that the e-CNY would be integrated into Alibaba’s services ecosystem. This pilot programme has since gradually been expanded through invites and cash incentives to eventually reach 140 million registered users by October 2021, according to the PBOC. The PBOC first began trialling the digital yuan app in April 2020 when it launched internal testing in four cities. It is important to note that the e-CNY is not a form of cryptocurrency, since it does not operate based on blockchain and is issued by a central bank (i.e., it is not decentralised like other forms of cryptocurrency). The digital yuan forms part of the monetary base (M0) of the country, which means the digital currency makes up a portion of the ‘cash’ that is in circulation. It is designed mainly to be used for high-frequency, small-scale retail purchases and transactions. It is issued by China’s central bank, the People’s Bank of China (PBOC). The digital yuan, officially called the Digital Currency Electronic Payment (DC/EP), is a digitised version of China’s legal currency, the renminbi (RMB). With over 1.2 billion users, of which around 750 million are active on a daily basis, this development could give significant exposure to the digital yuan, which some analysts say faces stiff competition from other online payment platforms – including WeChat itself. Shortly after the launch of the app, the Tencent-owned messaging app and payment platform WeChat announced that it would begin allowing users to select the digital yuan as a payment option to pay for services. Sign-up is possible through seven traditional commercial banks and two online banks, all Chinese:
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