China Launches Unique Park Aimed at Advancing Digital Yuan Ecosystem
Summary:
China inaugurated an industrial park on October 11 dedicated to enhancing the digital yuan ecosystem. The park, the first of its kind, is located in Shenzhen's Luohu district. The launch includes ten initiatives for bolstering the digital yuan ecosystem, worthwhile incentives for residents and businesses, and advantageous loan offers. Despite steps to advance digital yuan usage across 26 cities, the adoption rate is deemed slow.
On October 11, according to reports from Chinese media, an industrial park aimed at fostering the growth of the digital yuan's ecosystem was launched in China. Known as the e-CNY, this central bank digital currency (CBDC) is the first to have an entire park dedicated to its development. Positioned in the Luohu district of Shenzhen which is close to Hong Kong, the park opened with nine occupants. The local government, in a bid to accelerate the development of the digital yuan's ecosystem, has unveiled ten "developmental initiatives". These include digital yuan advertising, payment solutions, intelligent contracts, and solid wallets.
As an incentive, offers that include rent-free tenancy for a maximum of three years are being extended to residents. Commercial banks that choose to settle there can receive up to 20 million yuan ($2.7 million), while startups may be eligible for up to $50 million yuan ($6.9 million). The total fund for government support stands at 100 million yuan ($13.7 million). Additionally, preferential loan offers are also being provided.
Among the park's first inhabitants are Hengbao, Wuhan Tianyu Information, and Lakala Payment – the latter being a Visa partner and payments processor. Hengbao and Tianyu are known for manufacturing payment cards, among other products and services.
Zeng Zhaoxiang, deputy executive director of Wuhan Tianyu Information, expressed his excitement about the venture to China Daily stating, "We hope to achieve synergistic effects in the industrial chain and jointly promote the development of the park."
Chinese authorities have implemented various strategies to amplify the use of digital yuan, which is currently in the experimental phase. The currency is accepted by 5.6 million merchants throughout 26 cities participating in this pilot phase. Owing to technological advancement and government backing, this number is expected to increase steadily. Recently, an option for tourists to utilize Visa and Mastercard for wallet top-up has been added in the digital yuan application. Despite the existence of 261 million digital yuan wallets in 2022, there's an ongoing discourse around a perceived slow uptake.
Published At
10/12/2023 7:12:31 PM
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