Close Trials Digital Yuan For Online Shopping

December 8, 2020 0:35 pm

Beijing (PingWest)-, China’s second biggest online retailer, will become the first e-commerce platform to accept China’s digital yuan for online shopping.

JD Digits, JD’s fintech affiliate, will launch a pilot program this month, under which Suzhou residents will be able to use the digital yuan to buy selected product on JD’s platform.

The municipal government and the People’s Bank of China (PBOC) will issue 100,000 digital yuan red envelopes, worth 20 million yuan in total, to 100,000 selected residents of Suzhou city through a lottery on December 11.

Suzhou is the second city that has issued digital yuan vouchers to residents. In October, Shenzhen’s government has issued digital yuan worth 10 million yuan in total to thousands of randomly selected citizens.

PBOC governor Yi Gang said last month that more than 2 billion yuan has been used in more than four million transactions.

Digital Yuan, also known as digital currency/electric payment, is intended to be alternative to the paper currency. Like the paper currency, China’s central bank- People’s Bank of China will govern and control the supply and distribution of digital currency. It will then issue and distribute the digital currency via different commercial banks.

Starting in April, pilots of digital Yuan has begun trails in several cities, including Shenzhen, Chengdu, Xiong’an, Suzhou, with some government employees and stated-owned enterprises to receive their salaries and allowance in the digital currency.