Home News Over 3,000 ATMs in Beijing can now convert digital yuan into cash

Over 3,000 ATMs in Beijing can now convert digital yuan into cash

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Industrial and Commercial Bank of China (ICBC) became the first financial institution in the country to allow its clients to convert digital yuan into cash and vice versa. The bank has provided its customers with the ability to cash out digital yuan at more than 3,000 of its ATMs in Beijing. Before holders of the digital yuan could only use it in retail outlets that participate in the currency testing project.

The Digital Yuan is a national digital currency, issued by the Bank of China. Its testing started in October 2020. Since then, the Chinese authorities have distributed digital yuan worth $ 39 million to residents of the country. Draws of the national digital currency held in six cities of China: Shanghai, Beijing, Shenzhen, Suzhou, Chengdu and Changsha.

With the help of such advertising tools, local authorities are trying to popularize the digital yuan among the population. To make it as common for circulation as the classic fiat yuan.

Thus, we can state the fact that the central government, together with financial institutions, continues a targeted policy for the introduction of the digital yuan in the country.

Most likely, next year he authorities will equip even more ATMs with the above conversion function in large cities of the country, where business activity is greatest. Then they will introduce it in other provinces of the PRC.

“A very viable alternative”

Billionaire and founder of one of the world’s largest hedge funds, Bridgewater Associates, Ray Dalio said in May that the digital yuan would be more competitive than the digital dollar, calling the possible US option “definitely viable” and the Chinese approach to e-currency “a very viable alternative “.

“I think in the long term people will choose the currency, and the currency with the best fundamental characteristics will become the most competitive and will threaten other countries, he said. – I think that over the next few years, the yuan will become a more significant, reliable, stable and attractive currency in terms of profitability and will also be used more widely as a currency”.

At the same time, Dalio admitted that the digital yuan would compete with Bitcoin as an “alternative currency”. But would not completely displace the cryptocurrency market.

The exact launch date of the digital yuan is unknown. But China is preparing to use the national digital currency in Beijing during the 2022 Winter Olympics. Sun Guofeng, head of the monetary policy department of the People’s Bank of China, spoke about this in October 2020.

Thus, China is ahead of all other countries in terms of the pace of digital currency adoption.

Development and testing of the digital yuan continues

A hardware wallet for the digital yuan was previously introduced in China. Chutian Dragon also announced the development of a hardware wallet with fingerprint authorization capabilities. For this, they will use the technology of the Norwegian company IDEX Biometrics ASA.

Recently, China introduced the first digital yuan salary payment. The experiment took place in Xiong’an District, Hebei Province, in collaboration with local banks. They transferred funds directly to employees’ addresses, and transaction data recorded on the blockchain.

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