Digital Yuan Takes Off!

CAAC is partnering with China Merchants Bank (CMB) to launch a digital yuan payment platform. The Civil Aviation Administration of China (CAAC) has officially approved the Digital Yuan for purchasing airline tickets. The company released an announcement via a blog post on July 18, 2023.

Spring Airlines became the first aviation company to allow its ticket to be paid with Digital Yuan in 2021. The carrier charged 560 yuan for a plane ticket from Shanghai to Shenzhen. Xiamen Airlines soon did the same in November of the same year. Subsequently, Beijing Daxing International Airport and Beijing Capital International Airport also announced a Digital Yuan initiative in 2022. But widespread use of the asset in the aviation industry did not follow.

With the new development, CAAC is partnering with China Merchants Bank (CMB) to launch a digital yuan payment platform. The platform is known as Civil Aviation Ticket Government Procurement Management Platform Application Digital RMB Settlement Mode. While both parties have partnered on multiple projects in the past, this new project will allow digital currency to be used to pay for business airline tickets. Likewise, passengers can use CBDC to access new services through the platform.

In addition, the platform, which brings a new service experience to business travelers, is expected to accelerate the digital economy. Ahead of the launch, the company noted that it has completed functional tests of its air ticket purchasing service system. It also tested China Merchants Bank’s clearing system.