China is advancing the public rollout of its central bank digital currency (CBDC), the digital yuan (e-CNY), by introducing a new payment card designed to function like a traditional debit or credit card.
This digital yuan card was reportedly unveiled at the 18th Shenzhen International Financial Expo on November 7. The card is 1mm-thin, and it comes with a small display screen that shows transaction details and balance, as well as dynamic QR codes for payments.
The card offers both “tap-to-pay” and “scan-to-pay” options, enabling users to make transactions in person or online. Merchants can accept payments seamlessly through point-of-sale (POS) terminals, scanners, or mobile devices, providing a range of convenient payment methods.
Initially launched in 2021 as part of a pilot program, the digital yuan card has since integrated with Huawei’s HarmonyOS system, allowing users to access the wallet without needing a dedicated app.
This move marks a significant step in expanding the use and adoption of the digital yuan, with the wallet already being used for public transportation payments in cities like Qingdao in East China’s Shandong Province.
Despite the advancements, the digital yuan has faced challenges in achieving widespread adoption since its introduction in 2020. Some users and officials have expressed concerns about storing funds in a state-controlled digital currency, citing the lack of interest accrual and its limited practical use cases. Meanwhile, the Chinese government is reportedly pressuring local payment giants to reduce their market dominance to make room for the digital yuan.
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The launch of this payment card follows China’s continued push to integrate digital currencies into the daily financial ecosystem. It follows the BRICS group, with China as a leading member, unveiled its own blockchain-based cross-border payment system, BRICS Pay, on October 17 during the BRICS Business Forum in Moscow. The system was demonstrated using preloaded demo cards, offering participants a hands-on experience of the new platform’s capabilities.
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