Beijing Set to Introduce "New Digital Yuan Application Scenarios" – CBDC's Next Steps?

Beijing, China, is poised to pioneer new application scenarios for the digital yuan as it takes the lead in the adoption of the central bank digital currency (CBDC). At the Global Digital Economy Conference Digital Finance Forum, Zhao Wei Jiu, Deputy Director of the Beijing Local Financial Supervision and Administration Bureau, emphasised the city's commitment to supporting the financial industry's digital transformation.

As a national financial management centre, Beijing places great importance on the development of digital finance and aims to facilitate the pilot application of the digital yuan in various scenarios. The capital also intends to continue promoting mobile payment solutions as part of its ongoing efforts.

Beijing has played a crucial role in the CBDC pilot and gained global attention when it unveiled the digital yuan during the 2022 Winter Olympic Games. It remains a driving force behind the nation's digital economy initiatives, with the e-CNY serving as a central component.

Zhao stressed the importance of coordinating development efforts with other cities adopting the e-CNY and expressed Beijing's intention to explore more applications of digital technology in inclusive finance. The city also plans to advance cross-border financial services development.

Beijing's digital economy already represents over 40% of its financial output, while the rapidly expanding financial industry contributes more than 20% to its overall economy.

However, Beijing is not the sole Chinese city striving to embrace the digital yuan. The upcoming Asian Games, hosted by Hangzhou later this year, will shift the spotlight to this city. Hangzhou has already organised various showcase events related to the digital yuan, and multiple designated hotels accommodating athletes, supporters, and coaches have started accepting digital yuan payments. Nearby cities hosting Asian Games events, such as Wenzhou, have also intensified their adoption efforts. Wenzhou, the venue for dragon boat races, boasts e-CNY acceptance across its hotels, transportation networks, and major merchants.

In Wenzhou alone, the number of corporate digital yuan wallets has surpassed 165,100, while personal CBDC wallets amount to 4,371,200.