The digital revolution is taking place in China. The People’s Bank of China is working on digital yuan. But the Chinese commitment to cash must still be high, since banks started to introduce ATMs to the market in January this year that allow you to exchange the test version of the e-yuan for banknotes. Over 3,000 such ATMs are already installed.
The Agricultural Bank of China assembles ATMs into digital yuan
China is still in the final phase of testing the digital yuan. It is known that the currency is distributed as part of the lottery and you can buy it in selected places in the country (mainly in the largest cities).
However, the digital yuan – CBDC controlled by the People’s Bank of China – is now also available as part of the deposit and withdrawal system at over 3,000 ATMs in Beijing. Information the state-owned Xinhua news agency reported on Friday.
According to the report, the Beijing branch of the Industrial and Commercial Bank of China became the first bank to fully enable the exchange of digital yuan in the Chinese capital by launching more than 3,000 ATMs supporting digital currencies.
The Agricultural Bank of China (ABC), another major bank involved in China’s CBDC testing, also launched several ATMs in the Wangfujing area, Beijing’s main shopping street.
CBDC on the way
The Chinese government is actively promoting digital yuan in the capital through a digital currency lottery. Everything is happening as part of the ongoing digital yuan pilots. The state intends to distribute 40 million digital yuan ($ 6.2 million) to the people of Beijing as part of its “red envelope” campaign. The e-yuan access data is sent in red envelopes.
The assumption is that CBDC is to support the development of trade, also at the international level. But the program is very controversial. Some say it is an attempt to attack the US and hit the dollar, which is still the world’s main reserve currency today.
When will Chinese CBDC see the light of day? It is possible that this year, because Beijing wants the e-yuan to be the currency of the next Olympic Games. These are to take place in the Middle Kingdom in 2022. The deadline is realistic, because – as we mentioned – the e-yuan tests are very advanced.