China’s latest digital currency test doubles down on previous trial, nudging merchants and consumers to embrace e-yuan
- In China’s largest test yet of its digital sovereign currency, 100,000 ‘red packets’ containing 200 e-yuan (US$30) were distributed via lottery in Suzhou city
- Some business owners were reluctant to participate in latest pilot programme, but were told, ‘A merchant can decline payment in Alipay or WeChat Pay, but cannot decline payment in e-yuan’
A small team from China Construction Bank visited Ma Fei’s snack store at a shopping centre in Suzhou city in late November, asking Ma to join a trial of China’s new digital currency. Ma, the shopkeeper, refused to join, saying he had no need nor desire to take part in the programme.
A few days later, the mall’s management got involved, telling Ma that the digital yuan scheme was a government project and that he had better participate. This time, Ma, in his thirties, agreed to give it a try after being promised that his store would not have to bear any costs.
Ma opened a bank account at China Construction Bank and requested an electronic wallet. A bank clerk helped him download the Digital Renminbi App onto his smartphone, ushering him into China’s burgeoning world of digitalised cash.
Ma’s experience made him part of China’s largest trial of its sovereign digital currency – an initiative spearheaded by China’s central bank. The People’s Bank of China has said the digitalised yuan is meant to be a substitute for physical notes and coins, while providing citizens with a more secure and convenient means of payment.
Alipay is affiliated with Alibaba, which owns the South China Morning Post.