Digital yuan gets trials in Shanghai as scope of use expands

China’s Digital Currency Electronic Payment, also known as digital yuan, is expanding usage in more cities.

China’s central bank will increase the scale of the pilot projects of its digital currency in more scenarios and more cities, said Li Bo, a deputy governor of the People’s Bank of China, at the Boao Forum for Asia held in South China’s Hainan Province on Sunday.

“Currently, there’s no plan to launch the digital yuan nationwide. But the scale of the trial run will be increased,” Li said.

For example, the trial of the digital currency at the 2022 Beijing Winter Olympics will not only be conducted among domestic users but also among international athletes, Li added.

In Shanghai, the digital currency is undergoing trials in a housing estate.

The Zhonghuan Garden community, located in Putuo district, Shanghai is trying out digital yuan. More than 500 residents in the community have to pay property management fees and parking fees, and order express delivery, using digital yuan.

“The community began to carry out digital yuan registration for residents at the end of March. Now about half of the residents, or more than 500 people, have completed registration,” said He Jian, a person in charge of the residence committee of the community.

Users who install the app can be connected with their bank cards, which are slid up to pay and slid down to collect payments. Transactions can be completed without an internet connection and the money will be deducted directly from user’s bank accounts without additional fees, according to a demonstration shown by He to the Global Times.

So far, six shops and grocery stores around the community have agreed to accept digital yuan, which has allowed residents to buy vegetables and daily commodities with this payment tool.