Central Bank of China

State-Backed Agricultural Bank of China Launches the First Digital Yuan ATMs

The Agricultural Bank of China (ABC), one of China’s “big four” banks, is embarking on a pilot program to enable the first digital yuan ATMs. The banking institution deployed the first machines in selected branches in Shenzhen.

ATMs Will Work With a Smartphone App

According to SZ News, the program is part of the ongoing second digital yuan trial, consisting of a giveaway of 200 yuan ($31) to 100,000 residents.

The ATMs enable the possibility to deposit and withdrawal the digital yuan via a smartphone app. The pilot program’s mobile app allows customers to convert cash and savings to and from the token.

As the digital yuan pilot programs keep underway across the country, it’s not surprising that the ABC is testing the digital yuan ATMs. In fact, the bank is a partner of the People’s Bank of China (PBoC).

Zou Hua, manager of the bank’s Digital Yuan Innovation Lab, commented on the ATMs infrastructure’s deployment across Shenzhen:

Agricultural Bank has taken the lead in launching the ATM cash deposit and withdrawal function in the industry to guide Shenzhen residents to adapt to the digitization of cash and explore service transformation.

Shenzhen’s Interest in the Digital Yuan High, Says Expert

Moreover, local experts are reporting positive progress from the digital yuan tests in the city. A comment from Song Qinghuim, a local economist quoted by SZ News, reads as follow:

The third station of the digital RMB pilot program returned to Shenzhen again, indicating that the market has recognized the city. Compared with the first pilot, there have been many changes, which indicates that the digital RMB project is progressing steadily.

The Shenzhen authorities and the PBoC are also preparing the ground to launch another $3 million digital yuan giveaway. They expect to make it possible before the Lunar New Year holidays (mid-February).

Recently, the People’s Bank of China approved a physical card-wallet pilot to test its digital yuan. Coffee shop staff in a Shanghai-based university hospital was chosen as participants in the pilot.

What do you think about the new digital yuan ATMs? Let us know in the comments section below.

Wallet Card Can Pay or Accept e-CNY Without Wi-Fi or a Mobile Connection

According to Tencent News, staff members at Shanghai Jiao Tong University School of Medicine’s Tongren Hospital used the digital yuan token to pay for food. They used a point-of-sale device and a physical card with a small screen in the top right corner.

China Launches Digital Yuan 'Hard Wallet' Card Pilot Program

The card reveals how much digital yuan remains in the wallet. Local media reports claim that the Postal Savings Bank of China is in charge of providing technical support. The “hard wallet” allows staff to buy products such as a cup of coffee or snacks.

One of the photos featured in Tencent’s article also shows a hospital staff member holding a card with 144.75 yuan on it and three offline payments available. The latter feature allows people to pay or accept e-CNY transfers without Wi-Fi or a mobile network connection.

Digital Yuan Tests Still Taking Place in Several Chinese Cities

So far, the digital yuan pilot programs have been underway internally in Chinese cities such as Shenzhen, Suzhou, Xiongan, Chengdu, preparing for the Winter Olympics — an event which is still scheduled to take place in 2022.

Although local experts have warned that there is still “a long way to go” before the token can be fully launched, PBoC officials believe that the digital yuan could be launched before the Olympic event.

The central bank aims to attract as many domestic and foreign spectators as possible to use the digital yuan. The Chinese government’s plans points towards reducing dependence on the USD.

What do you think about the ongoing digital yuan tests? Let us know in the comments section below.