The e-CNY, an experimental usage launched three years ago, has been made available in several more domestic locations, such as Jinan, Shandong province and Kunming, Yunnan province, in the latest expanded trials on Dec 16. — Reuters
SHANGHAI: The trial use of digital yuan (e-CNY) has played a significant role in boosting domestic consumption as such use has been utilised in more Chinese cities and application scenarios, thus further boosting company participation, say experts.
The e-CNY, which launched experimental usage three years ago, has been made available in several more domestic locations, such as Jinan, Shandong province and Kunming, Yunnan province, in the latest expanded trials on Dec 16.
Trial use has also been promoted at the provincial level in Guangdong, Jiangsu, Hebei and Sichuan amid the most recent expansion. To date, e-CNY can be used in 26 locations across 17 provinces and cities.
Alipay, the payment app operated by Alibaba Group’s financial affiliate Ant, became the first digital payment platform to join the e-CNY acceptance network on Dec 12.
Platforms or applications connected to Alipay, such as e-retailer Taobao and Shanghai’s public transportation payment system, can all accept e-CNY payments.
Wang Pengbo, chief financial industry analyst at market consultancy Botong Analysys, said the connection to Alipay may signal an even wider use of e-CNY.
The large consumer and client base of Alipay can serve as an optimal platform to enrich the application scenarios of digital yuan and enhance user loyalty.
As China accelerates its optimisation in Covid-19 control policies, more platforms and municipal governments have issued coupons in the form of e-CNY to boost consumption and render a helping hand to pandemic-affected industries such as restaurants and hotels, he added. — China Daily/ANN
