China digital currency: e-CNY wallet handles subway, train fares in parts of Zhejiang province
- The e-CNY update involved the renovation of 11,000 turnstiles at more than 300 stations across 16 subway lines in Hangzhou and Shaoxing
- China is rapidly expanding the end-use applications for its central bank digital currency, officially known as Digital Currency Electronic Payment
The official wallet of China’s digital fiat money received a major update on Wednesday that will enable riders in certain cities to pay for public transport using the app alone.
Residents in the cities of Hangzhou and Shaoxing in eastern Zhejiang province can now pay for their subway ride by swiping a QR code on the e-CNY app. The new feature also applies to passengers who travel on trains between Hangzhou and Haining cities in the province, according to state-run newspaper Shanghai Securities Journal.
The update involved the renovation of 11,000 turnstiles at more than 300 stations across 16 subway lines in Hangzhou and Shaoxing.
China railway hub to use Belt and Road connectivity to promote digital yuan
Travellers can pay for their subway ride even when there is no internet connection, the report said.
Beijing started exploring a potential sovereign digital currency in 2014, and trial runs that began in late 2019 have expanded to 26 cities and regions across 17 provinces.
Major cities including Beijing, Shanghai and Chengdu have facilitated digital yuan payment for subway fares, but it has to be completed using a local public transport app, where the e-CNY is one payment option along with dominant digital wallets like Alipay and WeChat Pay. Alipay is run by Ant Group, an affiliate of Alibaba Group Holding that owns the South China Morning Post.
The latest update of the digital currency app is the first time that the wallet is able to process payments for subway tickets without using another app.
Last year, mainland China, Hong Kong, Thailand and the United Arab Emirates completed a 40-day trial of China’s digital currency, handling transactions worth over 150 million yuan (US$22 million) involving 20 commercial banks.
