How China Invites Tourists To Use Digital Yuan

Chinese Digital Yuan. (Photo; Doc. FintechNews)

JAKARTA China is one of the major countries that has started a central bank digital currency project or CBDC with its digital yuan. Uniquely, the country led by Xi Jinping not only provides convenience for its citizens to use digital yuan but they also make it easier for tourists to transact with digital money.

Interestingly, China presents an interesting update in digital yuan apps, which makes the life of tourists even more comfortable. Now, e-CNY apps allow users to refill their digital wallets before traveling using Mastercard and Visa payments. This feature of "recharge and use later" gives tourists the freedom to avoid troublesome foreign exchange transactions.

The e-CNY app is part of China's Central Bank Digital Currency Pilot program (CBDC). The app is available to local iOS and Google Play Store users, allowing them to create and manage individual digital yuan wallets. This wallet can be used to pay for goods and services in local traders participating in this program.

The latest update for the iOS version (version 1.1.1.) released on September 22 allows tourists to use their local phone number to create an e-CNY wallet, simplifying the process.

This update comes along with the Asian Games, a major sporting event hosted by China that attracts audiences from around the world. The Chinese government has made digital yuan a payment option for visitors.

Previously, the 2022 Beijing Winter Olympics became the first event where tourists could make payments to local traders using this digital currency.

Now tourists can refill their e-CNY wallets with physical cash at local banks and then return the remaining balances to their bank cards or accounts.

This step aims to provide a payment experience similar to local residents who are used to mobile payments. In addition, this will accelerate transactions, increase payment efficiency, and reduce payment verification time.

Visitors who use e-CNY wallets can transact with physical stores participating in CBDC trials, as well as popular digital platforms such as Didi, Meituan, Ctrip, and JD.

Banking experts believe that this update will bring comfort to tourists and also strengthen the position of digital yuan in international transactions, as well as increase opportunities for digital yuan to be adopted worldwide.

China has committed to expanding its availability of e-CNY as a wider retail payment option. At the annual China International Service Trading Exhibition, director of the Institute for Digital Currency Research from the People's Bank of China (PBOC), Changchun Mu, stated that e-CNY has experienced rapid development in terms of its "organization" and business model.

The key actor in the development of CBDC in the Bamboo Curtain country also emphasized the importance of digital wallet providers to facilitate digital yuan payment options in various retail scenarios.