Metro Payments to Start with Digital Yuan in China

In China, which has been constantly advancing in the trials of central bank digital currencies (CBDCs), which it started in 2020, and which is making new trials every day, phone transportation payment tests have now started. Some subway stations in the country’s Quingdao city will begin to accept digital yuan payments. The trials, initiated by a joint effort between the Digital Currency Research Institute, the Bank of China (PBOC), and the city’s municipal transportation directorate, will be funded by China Telecom and China Unicom, as well as a firm called Digital Finance Public Services.

People using digital yuan will also be able to make subway payments with e-CNY (digital yuan). Even if the phone is out of battery or the operator is disconnected, payments can be made using NFC technology. As it is known, NFC technology can be used easily in many new era smart phones.

Earlier this year, the People’s Bank of China introduced the NFC feature to the specially issued digital yuan application. However, this feature was not available for transportation payments. With these trials in the city of Qingdao, this situation will also begin to come to an end gradually.

Users will have to enter the information of SIM cards belonging to China Unicom or China Telecom operators into the digital yuan application in order to pay with the phone that is out of charge and does not receive the operator. The payment will be deducted from the balance as soon as the phones touch the card reader.