As the world transcends to the digital revolution adopting digital technologies in every sphere of life, leading nations are thriving to tap the power of cryptocurrencies and digital payment methods. China is treading ahead in the cryptocurrency race by speeding the development of its CBDC digital Yuan.
JD.com, the leading e-commerce giant in China, has agreed to allow the customers to purchase selected items with Digital Yuan as part of a pilot program beginning end of December 2020.
JD.Com allows customers to pay in digital Yuan.
Bloomberg reported that JD.com became the first online mall in China to allow its customers to purchase with Chinese central bank-backed cryptocurrency digital Yuan. The company would launch a pilot program that would allow the purchases through the digital currency with the help of its Fintech affiliate JD Digi’s.
The company sent out around 100,000 digital Yuan vouchers to the users worth 20 million to the Suzhou city residents for using the digital Yuan and getting accustomed to the same. JD Digi’s attempts to support the Chinese government’s initiatives to digitize its financial sector and blur the gap between the traditional money and digital payment methods.
JD Digi’s would further help the Peoples Bank of China and the various government bodies to support the development and launch of Digital Yuan as part of a pilot project in Suzhou city. The Governor of the People’s Bank of China noted that more than four million transactions worth 2 Billion Yuan were done in Digital Yuan last month as the bank launched the testing of the digital currency in few Chinese cities in April to foster digital Yuan as a powerful international currency.
Lately, the local authorities of the Shenzhen city also distributed 10 million digital Yuan to several residents when president Xi Jinxing visited the city. In the month of October around tens of thousands of Chinese residents spent digital Yuan at various outlets like convenience stores, Walmart, and retail centers as part of an experiment in which the digital currency was given to 50.000 randomly selected residents on the Digital Yuan’s wallet app.
Chinese digital currency is growing at an exceptional rate; with the government taking prominent steps to make it successful, JD.com can play a pivotal role in taking Chinese CDBC forward.
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