China’s progress for a national central bank digital currency (CBDC) has now reached the subway of Beijing.
Beijing’s rail transit service is now accepting digital yuan from passengers. The new form of CBDC payment can be done through the mobile application offered by the Industrial and Commercial Bank of China.
The pilot program was disclosed on Wednesday, and it will be available in 24 subway lines and four suburban railway stations. Only those who have an account at the Industrial and Commercial Bank of China will be able to access the new service.
“You need to download a mobile app that is linked with your bank account to access the service.”spokesperson for the Beijing rail transit network
China is one of the most advanced countries when it comes to central bank cryptocurrencies. The government announced at the beginning of June that it was about to hold the third lottery for the Central Bank Digital Currency pilot.
Free online wallets containing $6 million in digital yuan were going to be offered to winners. The lottery took place in Beijing, the third city to test the CBDC also known as eCNY.
The country has already held other trials in major cities like Shanghai, Suzhou, and Shenzhen. The lottery held in Shenzhen officially started in January 2021 giving them the opportunity to win 20 million digital yuan, which are worth over 3 million US dollars.
100,000 red envelopes were distributed, and the currency could be spent at more than 10,000 merchants. Even though China supports the creation of a digital yuan, it is also one of the major opposers of other cryptos.
China’s cryptocurrency mining and trading crackdown caused a literal market crash last month when the State Council decided to shut down everything related to these types of currencies in May.
The country has been trying to reduce carbon emissions but this is not the only reason behind the latest ban. The council thinks digital currencies not only increase pollution, but they can also interfere with the financial stability of the country.