It’s been a while since there were news about the Chinese digital yuan. Given China’s scale, the absolute figures are impressive, but there’s nothing yet to boast about in percentage terms.
The People’s Bank of China has already tested all the crypto tricks to attract more users. There were airdrops, benefits, and discounts, but so far, progress has been slow.
And now, new tricks have been resorted to, to popularize the local CBDC.
The digital yuan, the digital currency of China’s central bank (CBDC), is now being used as a security element in prepayments for cars.
According to local media reports, a pilot test allowing customers to pay for their cars with digital yuan was launched in early February in Shenzhen, and several customers have already purchased their cars using this system.
Local media reported that the Market Supervision Bureau in Pingshan, a district of Shenzhen with a population of 400,000, and the Agricultural Bank of China have joined forces to conduct a pilot test for car payments.
The test was organized to use the advantages of using digital yuan, allowing for intelligent locking of user payments, which can only be removed after the car’s delivery.
The first group of consumers who participated in the pilot project in early February made their payments using the “Peace of Mind Smart Payments” system of the Agricultural Bank of China and are awaiting the delivery of their cars.
The system will take care of fund distribution after the completion of delivery, automating the payment flow and organizing the delivery of cars, which are in high demand in the market.
Mr. Wang, one of the project participants, stated that although consumers purchase these cars from official dealers, advancing a large sum of funds is always a cause for concern.
With the prepayment system using the digital yuan car product – the service is guaranteed, and the funds are more secure.
Moreover, in Pingshan, particularly in the Lunpin Tianhun business district, a more comprehensive prepayment program was launched. There, 50% of vendors with prepayments signed an agreement to use digital yuan for prepayments for catering, education, training, and other services in cooperation with banks.
This type of use of the national digital currency is seen as the most promising. The seller will not be able to cheat the buyer by not delivering the car, other goods, or even services. Because the People’s Bank of China will immediately block their wallet.
Such a method of implementing the digital yuan very much resembles the eBay-PayPal functional bundle. When the payment service guarantees the safety of the client’s funds until they receive the service or goods.
Customers no longer need to worry about the reliability of the seller, service provider, or developer. The service is in demand.
In Russia, the use of such a guaranteed payment instrument would be relevant for transactions with real estate, car orders, and in shared construction.
In the event of non-fulfillment of the contract or violation of the terms and deadlines for delivery/construction, the seller’s or developer’s wallet would be instantly blocked, and all funds would be fully returned to the buyer.