The ATMs are located in the city of Shenzhen, the “Silicon Valley” of China. The authorities would be carrying out the second part of the tests to the digital yuan.
China’s digital yuan keeps stepping high; now, Chinese citizens will be able to exchange cash for digital yuan (or vice versa) at ATMs. This report appeared in various national sources after one of the most relevant Chinese state banks acquired these machines in its branch offices.
The Agricultural Bank of China begins this New Year with the installment of a group of ATMs for the digital yuan. Its offices are located in Shenzhen, a city that the Chinese community refers to as the “Silicon Valley” of China. This name derives from being one of the titanic and important financial centers in the country.
As described by the Sznews newspaper, the ATMs will show compatibility with smartphones, this compatibility allows users to gain instant and easier access to the wallet where the user’s digital yuan settles. The machine possesses the technology to instantly permit an allowance of both accesses to new yuan in digital format, as well as exchange such currency for cash. In that manner, the authorities can start the second part of a set of testings for the new payment system of the People’s Bank of China (PBoC), which implement is under construction since October 2020.
The implementation was successful. The digital yuan impacted positively the domestic market
The PBoC is well- known for issuing a total sum of $ 3 million in digital yuan to the citizens of Shenzhen, the money’s distribution came to be effective among a total of 100,000 residents.
Furthermore, a report says that the entity led the implementation of the payment system in a Shanghai hospital, with a list of positive results thanks to the incorporation of a debit card into the by incorporating debit cards into the internal market of the country.
The process of adopting the digital yuan was not an easy cake, it needs some complements to make the currency more solid as financial support, the Chinese government decided to inaugurate the “Digital Yuan Innovation Laboratory”. This laboratory will be an entity that takes direct responsibility for the support of the development of applications that validate the use of the new Chinese currency.
What do People Think about the Implementation of Digital Yuan?
Chinese authorities created a solid net of promotion to explain the use of this payment method and its impact on cash. Despite the government’s expectations, there are some individuals, among the population showing rejection and even resistance to use this new currency.
Citizens are talking about the possibility that comes from the fact that the digital yuan would affect financial privacy, an argument that also worries human rights defenders and regulators from other places around the globe. Those thoughts that run in common among the population appear to be some of the most relevant challenges that the People’s Bank of China will undoubtedly face when carrying out its adoption plan.
By: Jenson Nuñez