China Directs Its Citizens To Buy Public Transport Tickets With Digital Yuan

China applies digital yuan payments to buy public transportation tickets. (Reuters)

JAKARTA – After testing and issuing the digital Yuan, China is increasingly implementing payments with its own digital currency. This time public transport tickets can be purchased with digital Yuan.

The digital yuan or e-CNY is the currency of the central bank (CBDC). The e-CNY digital currency is already available in 23 cities in China, but only 11 cities are implementing digital Yuan payments.

As the first country to launch a digital currency, China will distribute it to a number of commercial banks. This allows them to use the digital version of the Yuan after obtaining a license from China's central bank, the People's Bank of China.

In addition, the Chinese government has also successfully launched a digital yuan application for iOS and Android. To make digital Yuan transactions, you can use the scan method, all you need is a QR code. This application can be used for various payment purposes.

According to a report from DailyCoin, the digital currency (e-CNY) is backed by the Chinese yuan, banknotes, and coins, and is backed by the Central Bank's silver and gold reserves.

This payment method provides convenience for Chinese citizens. However, foreign nationals who visit will find it difficult to get and use digital Yuan. The reason is, the digital yuan application only supports Mandarin.

For information, digital Yuan or e-CNY does not use blockchain technology. e-CNY is also not as decentralized as cryptocurrencies. e-CNY is designed for payment transactions only.