Chinese Town Becomes Digital Yuan “Demonstration Town” in CBDC Deal with Postal Savings Bank of China
A town in Siyang County, China, called Likou, has agreed to become a digital yuan “demonstration town” after striking a deal with the Likou Branch of the Postal Savings Bank of China. The aim is to build a digital RMB demonstration town and promote the application and popularization of the digital yuan in the town’s “green” and “smart city” technology. The Likou deal will serve as a model for other towns interested in adopting the digital yuan.
Key Points:
- Likou town in Siyang County, China, has signed a deal with the Likou Branch of the Postal Savings Bank of China to become a digital yuan “demonstration town.”
- The bank has been a strong advocate for the digital yuan and has focused on developing offline and hard wallet solutions.
- The central People’s Bank of China sees the digital yuan as a solution for the unbanked population.
- The Likou deal aims to promote the use of the digital yuan and create a specialized digital yuan community.
- The Postal Savings Bank has been piloting internet-free digital yuan smartcards and wearable hard wallets.
The Likou deal is part of China’s broader efforts to promote the adoption of the digital yuan. In Jiangsu Province, a farmer’s market in Wuxi recently held a promotional event for digital yuan-paying customers, with many stallholders offering discounts and bonuses. The central bank is actively encouraging the use of the digital yuan in various sectors, including transportation and retail, in order to drive micropayments adoption.
Hot Take:
The agreement between Likou town and the Postal Savings Bank of China to create a digital yuan demonstration town demonstrates the Chinese government’s commitment to promoting the use of the digital currency. By focusing on developing offline and hard wallet solutions, China aims to cater to the unbanked population and provide efficient, convenient, and safe services. The Likou deal serves as a model for other towns in their adoption of the digital yuan, further accelerating China’s pursuit of greater digital currency adoption.
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