Foreigners Can Top Up Digital Yuan Wallets with Visa and Mastercard
China has introduced a user-friendly upgrade to its digital currency system to make the digital yuan more enticing to international visitors. This enhancement allows foreigners to top up their digital yuan wallets through the globally recognized payment networks Visa and Mastercard, among other convenient methods.
China Extends a Warm Welcome to Foreign Digital Yuan Users
China's central bank digital currency (CBDC) platform operators have revamped their payment services to enhance the user experience for foreign nationals visiting the country, as reported by the state-run China.org.cn portal.
The introduction of the "recharge before use" feature within the digital yuan application now enables foreign visitors to effortlessly fund their built-in e-CNY wallets through the global online payment networks of Visa and Mastercard.
Moreover, foreigners can also load their Chinese digital currency wallets by depositing cash at a local bank. At the end of their stay, any remaining balance can be conveniently transferred back to their overseas bank card or the initial account used.
New Upgrade Addresses Limitations of Foreign Users
This transformative update addresses a previous limitation faced by international travelers, who were unable to pre-fund their e-CNY wallets. This enhancement is expected to offer foreign users equal access to more convenient payment options, including the "quick pay" feature. It empowers them to utilize their e-CNY across physical stores and online platforms, such as popular services like Didi for ride-hailing, Meituan for takeaways, Ctrip for travel bookings, and JD for e-commerce.
Dong Ximiao, Chief Researcher at Merchants Union Consumer Finance, notes that it will create a more convenient payment environment for those exploring China. Zhou Maohua, an analyst at China Everbright Bank, anticipates that this development will boost the international presence of the digital yuan and facilitate cross-border transactions. Both experts are confident that this step will further the global adoption of the Chinese CBDC.
China's journey for the digital yuan commenced in 2014, and it has conducted numerous trials over the past few years. By the end of May, the central bank announced that e-CNY transactions in trial regions had reached a total of 264 million, with a combined value of 83 billion yuan (USD 11.4 billion). By the end of June, these figures had surged to 1.8 trillion yuan (USD 250 billion), with 16.5 billion digital yuan in circulation.
Do you think the latest update of the digital yuan payment system will encourage more visitors to embrace the CBDC? Please share your thoughts and opinions in the comments section below.
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