The government recorded purchases made with the digital yuan CBDC student card in China’s most recent CBDC experiment.
The CBDC studies in China are still going on
China is unquestionably the world leader when it comes to central bank digital currency (CBDC) testing. So far, the Asian superpower has performed some CBDC studies to determine consumers’ profitability, feasibility, and spending patterns when it comes to digital cash.
Authorities tested the digital RMB smart student ID card at the Hainan Lu Xun Middle School in the most recent of these experiments. It’s worth noting that the digital yuan, also known as the eCNY, was widely utilized at the recent Winter Olympics. The trials have now been expanded to other parts of the country.
The phone uses NFC for purchases and authentication and GPS to track the child’s position. Speed dialing may also be set up for up to three family members.
The card can be used to make payments on the school’s campus. However, the school can approve the card to be used at a set of off-campus retailers. Parents may also keep track of their children’s payments using the digital RMB smart student ID card. They can also add money to the card’s digital currency balance.
While the smart cart allows parents to monitor their children’s purchasing habits actively, it also instills a sense of unquestioned conformity with third-party supervision from an early age.
The number of applications for the digital yuan is growing
The digital yuan has recently been used to prepay businesses in the new Hainan Free Trade Port Zone. Consumers may prepay for services with the digital yuan, and blockchain smart contracts are utilized to distribute payments to businesses based on consumer use. If the merchant goes out of business, the customer may be entitled to a refund. The flow of payments is automated from the merchant’s perspective.
As previously reported by crypto.news, China’s Dalian Commodity Exchange had successfully deployed the digital yuan for fees settlement in the country’s futures market.