Even though China’s central bank digital currency (CBDC), which is known as the digital yuan, is still in its trail phases, it is still making some major strides. An executive of the People’s Bank of China (PBoC) shortly announced that the total number of digital yuan that has been issued so far has crossed 140 million. Now, the most recent announcement states that the CBDC will now be used in one of the biggest shopping festivals in the country. It was announced by JD.com that they will accept the digital yuan on their platform for the first time during the Single’s Day shopping festival.
The digital yuan has not been officially rolled out in China as yet, but when it comes to adoption, the CBDC has undoubtedly made some significant progress. Currently, the digital currency is in its testing phase and it is expected that the size of the testing phase will be expanded, as the coin will be used in the shopping event of Singles Day. On November 11th, a report was issued by JD, which disclosed that more than 100,000 people had used the CBDC on their app for this event during the campaign period. The campaign event was scheduled to begin on October 31st and come to an end on Thursday.
There are a number of instructions that users can find on the JD wallet app and the eCommerce giant has provided them for assisting users who are interested in downloading the digital yuan app. People who decide to use the app will be given 15 yuan that they can spend on the platform and this is the equivalent of $2.34. JD is entering into a partnership with China Construction Bank in order to facilitate digital yuan payments for its clients on its platform.
The digital yuan has already been rolled out in leading cities of China on a trial basis. It is also important to note that this is not the first time that JD has interacted with the digital yuan. Last year in December, the eCommerce platform had become the first online platform to have accepted the digital yuan. Moreover, the company also mentioned earlier this year that it had even used the digital yuan to pay some of its employees. Single’s Day is a massive shopping event that attracts a huge number of shoppers because of the big discounts that retailers offer.
Companies make billions in sales during this shopping festival and the current use of the CBDC during this festival will be a larger test for the digital yuan than before. The digital yuan was used by 450,000 people on the JD app from December last year to the middle of this year. During this time, people have spent more than 100 million yuan on the platform. The sales expected during this event are also going to be quite massive and this will also help in promoting the adoption of the digital yuan. The central bank digital currency will once more prove its effectiveness.
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