As the Chinese cryptocurrency, digital yuan is showing aggressive performance, the e-commerce giants in China have started to give it a warm welcome.
As reported by Bloomberg, the second-most prominent e-commerce giant in China, JD.com, will accept digital yuan as a source of payments.
Second Biggest Online Retailer
The initiative is a part of a pilot program, which will be supervised by a fintech affiliate of JD.com. According to the plan, the customers would be able to buy particular things by utilizing the CBDC issued by the People’s Bank of China.
According to the report, on December 11, the e-commerce giant will roll out 100,000 digital vouchers. The major aim of the company is to create an awareness of digital currency among the people of Suzhou city.
“JD Digits will contribute to promoting the development of the digital and real economies by supporting the People’s Bank of China and local governments in launching the digital yuan’s pilot program in Suzhou,” said an unknown official at the company.
It is the first of its kind to offer a virtual mini-mall for customers who want to purchase things with the digital yuan. It seems that the physical economy is now replacing the digital economy as people want to pay via digital way.
Recently, the government of Suzhou announced that they would distribute $3 million (20 million yuan) via an airdrop program among the residents of Suzhou. The interested people will have to apply for it and then wait for the results. The winners will get $30 (200 yuan) in the Chinese cryptocurrency, which is being tested by the People’s Bank of China. The results of the giveaway would be announced before China’s famous shopping festival and citizens can purchase certain things via digital yuan.
According to Yi Gang, the governor of the People’s Bank of China, four million transactions have been conducted successfully in China’s digital currency so far. In these 4 million transactions, $306 million (2 billion yuan) have been transferred which shows people are interested very much in using a digital currency in daily life transactions rather than cash.
In the month of October, the government of Shenzhen distributed about 10 million yuan to the residents, which was a part of a pilot project introduced by the government of China. China has sped up the process of testing of digital yuan by rolling it out in retail purchases to check its feasibility.