China enables digital yuan to pay for flight tickets

abdelaziz Fathi

China’s pilot program for its central bank digital currency (CBDC), known as the digital yuan, has taken a significant leap forward with the integration into Chinese business and air travel systems. Chinese business travelers will now have the option to pay for their flight tickets and variety of other functions using the e-CNY.

Hong Kong adopts digital yuan payments through Chinese banks

A collaboration between the China Merchants Bank and the Civil Aviation Administration of China is further expanding the application scenarios of the digital currency. The alliance introduces a digital yuan platform for merchants tailored to facilitate transactions for travelers within the aviation network. Passengers, too, will have the opportunity to use the CBDC for accessing new services through the platform.

China’s civil aviation news agency reported that China Travel Service, a travel firm based in Suzhou, has already utilized the digital yuan platform to purchase tickets on behalf of its clients. Also in 2022, Beijing Daxing International Airport and Beijing Capital International Airport partnered for a cargo-related digital yuan initiative.

The development comes shortly after Chinese banks and mobile carriers partnered to launch a SIM card purse product embedded in the e-CNY payment platform of digital yuan. The SIM card purse will provide users with a more convenient method to pay for their purchases at the point-of-sale machines. The payment can be made even if the user’s device is powered off or disconnected with the internet.

China’s sovereign digital currency has been recently embedded into WeChat, China’s leading social networking and payment app, in a fresh move to lure new users.

WeChat Pay, which counts more than 1 billion monthly active users, now facilitates the “express payments” function of the digital yuan wallet. The red packet feature is a function made popular over the years by the country’s dominant payments app Alipay and WeChat Pay.

Currently, the e-CNY is being tested in 23 cities and regions in 15 provinces and provincial-level cities. However, officials say that the main purpose of the pilot program for the time being is to build confidence in the digital yuan’s reliability and ease of use.

Jinan, the vibrant capital of Shandong Province in China, also embraced the digital yuan earlier this month as a form of payment on its entire bus network. It has become the country’s latest city to enable digital yuan for paying for public bus tickets and subway rides, including major bus lines like the B52 and BRT5.

This initiative aligns with a broader nationwide endeavor to promote the widespread usage of the digital yuan across various regions of China. Earlier in April, Changshu city in East Jiangsu Province allowed paying the salaries of civil servants and state-owned units entirely in digital yuan.

Read this next

Market News

Base metals could soon take off from the base again

Dive into our full analysis to understand the potential resurgence of base metals and what it could mean for your investment strategy.

Digital Assets

Global clamp down on crypto tax evasion to go live in 2027

“As jurisdictions that play host to active crypto markets, we therefore intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027.”

Digital Assets

Ripple and Archax team up for tokenization with XRPL

“There is clear real-world utility in use cases like RWA tokenization for the operational efficiency, access to liquid markets and transparency inherent to crypto, and Archax has already tokenized assets such as equities, debt instruments and money market funds. Financial institutions are now understanding this and we are excited to play our part in helping them to embrace the technology by bringing their assets onto the XRPL.”

Interviews

Acuity Trading at iFX EXPO LATAM: Andrew Lane on the rise of AI and prop trading

At iFX EXPO LATAM 2024, Acuity Trading’s Andrew Lane discussed the successful rollout of their Research Terminal, the impact of AI on the trading industry, competition from AI-powered solutions, emerging market trends in Latin America, and the rise of prop trading, while addressing regulatory challenges and innovations.

blockdag

Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.

blockdag

Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

<