Shaoxing, China launches Asian Games-themed Digital Yuan giveaway

Shaoxing, China launches Asian Games-themed Digital Yuan giveaway

The Blockchain Revolution in China: Digital Yuan at the Asian Games

Source: Weiming/Adobe

The city of Shaoxing in China is gearing up for the Asian Games with an exciting initiative to promote the use of digital yuan. As China prepares for a major central bank digital currency (CBDC) showcase, Shaoxing is planning to issue around $5.6 million worth of digital yuan tokens in a giveaway event called “Welcome to the Asian Games” [^1^].

Digital yuan, also known as the electronic or virtual yuan, is a form of digital currency issued by the People’s Bank of China (PBoC). It operates on a blockchain infrastructure and provides a secure and efficient means of conducting transactions [^2^]. The tokens will be distributed through a games-themed lucky draw-type event, with “winning” residents receiving approximately $14 worth of the CBDC [^1^].

The Rise of Digital Yuan in Shaoxing

Supermarkets, hospitals, and transport providers in Shaoxing have already implemented digital yuan payment functions, allowing residents to conveniently make payments using the digital yuan app’s QR codes [^1^]. The city has also upgraded its metro system to accept digital yuan payments, and rail links connecting Shaoxing and Hangzhou, the host city of the Asian Games, now cater to CBDC-paying passengers [^1^][^2^].

China has been actively promoting the use of digital yuan in various regions and industries to accelerate its adoption. The PBoC has upgraded its official digital yuan app to enable smartphone users to pay with the CBDC on the Hangzhou Metro [^2^]. This push for adoption ahead of the Asian Games suggests that the Chinese authorities are leveraging the event as an opportunity to showcase the capabilities and benefits of digital currencies.

Building Momentum for the Digital Yuan

The CBDC giveaway event in Shaoxing is organized by the Shaoxing Municipal Bureau of Finance, further demonstrating the commitment of local authorities to encourage the use of digital yuan [^3^]. To be eligible for the giveaway, participants must possess digital yuan wallets and be registered residents of Shaoxing [^1^]. This initiative not only promotes the adoption of digital yuan but also deepens financial inclusion, as residents need to have digital yuan wallets to participate.

One of the significant advantages of using digital yuan is its efficiency in cross-border transactions. Recently, the China Merchants Bank and the Civil Aviation Administration Clearing Center announced the launch of a CBDC platform to facilitate the use of digital yuan for business air ticket payments [^3^]. Such initiatives not only drive digital yuan adoption within the country but also open up opportunities for expanded use cases beyond national borders.

The digital yuan, as a blockchain-based digital currency, offers secure and transparent transactions. Blockchain, the underlying technology powering digital currencies, operates as a decentralized ledger shared across multiple computers, ensuring immutability and fraud resistance [^4^]. It eliminates the need for intermediaries and allows for peer-to-peer transactions, making payments faster and reducing transaction costs.

China’s approach to integrating digital yuan into the Asian Games demonstrates the country’s commitment to blockchain technology and its potential to revolutionize financial systems. By showcasing the practical benefits of digital currencies, China is paving the way for greater adoption and setting the stage for a future where blockchain-based financial systems are the norm.

Zhejiang Province, China, the host province of this year’s Asian Games. (Source: TUBS [CC BY-SA 3.0])

In conclusion, Shaoxing’s digital yuan giveaway event for the Asian Games is an exciting initiative that aims to promote the adoption of digital currencies and demonstrate the advantages of blockchain technology. With various sectors in Shaoxing already implementing digital yuan payments, it is clear that the Chinese authorities are actively driving the adoption of digital currencies. As the world watches, this showcase at the Asian Games is set to leave a lasting impact on the future of finance.

References: [^1^]: China News Network. (n.d.). Shaoxing, China, Plans $5.6M Digital Yuan Giveaway Amid Asian Games Frenzy. Retrieved from source [^2^]: Kumar, A. (2022, May 26). What Is Digital Yuan? A Complete Guide to China’s CBDC. CoinMarketCap. Retrieved from source [^3^]: China Merchants Bank. (n.d.). China Merchants Bank is deploying a CBDC platform. Retrieved from source [^4^]: Kshetri, N. (2021). Blockchain’s Roles in Building Digital Economies: Digital Transformation and Smart Contracts. In Blockchain Technology and the Sustainable Development Goals (pp. 25-40). Elsevier.