China is one of the largest economies in the globe, an attribute that has been made possible due to cheap labor and resourcefulness from its massive population of over 1.3 billion citizens. In an effort to maintain its status as an economic super power, the country has made many investments in the crypto industry including the not so recent launch of their Digital Yuan, a CBDC(Central Bank Digital Currency), that is backed by the Central Bank of China as a legal tender. The Chinese government has also had many activities and projects lined up to popularize crypto within its population and therefore achieve more adoption from its population.
The most recent adoption drive is now directed towards the country’s transport sector. According to reports, Chinese authorities have given a green light for the use of the Digital Yuan to pay for toll fees at the nation’s busiest roads. According to Shenzen Securities Times and Sina Finance, the Department of Transport for Jiansu province has upgraded toll terminals along the Nanjing Expressway and affiliated routes to allow drivers to use the Digital Yuan as a payment alternative for toll fees. The technology has been termed as seamless since drivers are able to tap their mobile devices or card readers as they pass through the toll booths and the fees are deducted automatically from their Yuan wallets in real-time therefore reducing commute and wait times at the toll booths, a common phenomenon when utilizing other forms of payment. The toll collection system could see usage by more than 100 million drivers who use toll roads within the country.
Apart from that, the province is also spreading the the application of the blockchain powered system to other highways within its boundaries and gradually to the entire road network in the province. With the pilot zone of the Digital Yuan gaining momentum, many regions and provinces have been added to this zone and are expected to implement similar solutions in coming days.
The Digital Yuan is also taking off to the skies with Changsha Huanghua International Airport allowing passengers to use the Digital Yuan token, a first in the nation. Passengers who pass through the airport’s terminals will have the ability to pay for goods and services at the airport using the Digital Yuan while waiting for their connecting flights. According to reports, some banks are exploring ways for the Digital Yuan to be used to pay for tuition in institutions across China. The scheme is set to involve integrated token payment systems that offer campus students with ID cards that also double as bank cards that are powered by the Digital Yuan.
The application of blockchain in China is currently at an advanced stage. Earlier this month, electric-free Digital Yuan payment adoption started off fairly good as the number of outlets that accept offline payments is increasing. This outlets include supermarkets, bookstores, groceries and other service terminals among many more.
