Chinese e-commerce firm JD.com Inc has become the first virtual network globally to embrace the indigenous digital currency of Beijing.
According to the Reuters report, the Chinese e-commerce company JD.com has become the first Chinese company to accept digital yuan as a mode of payment. As part of an experimental giveaway of digital yuan to Suzhou residents near Shanghai to a post on the company’s official WeChat account, JD Digits, the company’s fintech arm, will accept Chinese digital yuan as payment for some items on its online mall. Central banks are actively working on CBDCs in all countries.
According to the study, under the Suzhou initiative, 200 digital yuan red envelopes will be distributed to 100,000 consumers selected through a lottery by the municipal government and the People’s Bank of China (PBOC). After the PBoC distributed 10 million yuan worth of digital currency to 50,000 randomly chosen consumers in Shenzhen earlier, Suzhou’s scheme is the second such digital lottery.
Governor Yi Gang of the Chinese central bank said last month that more than 2 billion yuan had been invested using China’s digital currency in 4 million separate transactions so far.
Many major national central banks are now actively studying central banks’ digital currencies and making real-world testing plans. Versions of their digital currencies have been launched by some smaller economies already.
China is the only major country to complete its creation and launch a full-fledged digital yuan testing program. A national digital currency was introduced earlier this year on the island of Cayman. CBDCs are actively pursued by countries such as Canada, Japan, the Philippines, and many others. As previously reported, Suzhou is all set to become the next city to test China’s digital yuan, as China’s central bank is planning in the coming weeks to carry out the central bank’s digital currency infrastructure.