Improved Access for Foreigners:CN's Digital Yuan App Introducing

China has taken significant steps to enhance the safety and convenience of its digital yuan (e-CNY) payment service for foreigners. The latest update, rolled out on September 22, 2023, introduces several new features on the digital yuan app (e-CNY app), making it easier for foreigners in China to top up their e-CNY wallets before conducting transactions.

China continues its efforts to improve the usability of the e-CNY by introducing noteworthy features on the e-CNY app, which is currently in its pilot stages. These updates aim to make the e-CNY more accessible and convenient for both local and foreign users.

One significant recent update caters specifically to IOS users, allowing them to top up their e-CNY wallets using international cards, including Visa and Mastercard. Additionally, foreign visitors can now easily register on the e-CNY app using their foreign phone numbers, simplifying the process of accessing and utilizing the e-CNY.

The e-CNY app's digital wallet serves as an online repository for managing and storing e-CNY. Accessible through the e-CNY app, this wallet is the primary tool for users to engage with e-CNY. Users have the flexibility to establish multiple digital wallets within the app, configure various parameters such as daily spending limits, and link different bank cards for added convenience. However, certain "higher-level" wallet options within the e-CNY app require a Chinese identity card for access.

China's e-CNY stands as a central bank digital currency (CBDC) issued by the People's Bank of China (PBOC). It shares the same value as the standard renminbi (RMB), making it a legal tender and a digitized equivalent of physical RMB. CBDCs, like the digital yuan, offer faster, more cost-effective, and theoretically more secure transactions compared to conventional methods.

While still in its pilot phases primarily in major coastal cities, the e-CNY is progressing towards an official nationwide launch. It's important to note that CBDCs, like the e-CNY, are distinct from cryptocurrencies. Unlike cryptocurrencies, CBDCs are fiat currencies subject to government control and are more predictable in value due to their pegging to existing currencies.

China has been testing the e-CNY since April 2020, starting with pilot programs in four cities and expanding to fifteen provinces and twenty-three cities, including megacities like Chongqing and Guangzhou. The e-CNY's reach extends beyond China's borders, with foreign athletes and tourists accessing it during the Beijing Winter Olympics in 2022. Hong Kong is also exploring cross-border payments through an e-CNY pilot, potentially strengthening the renminbi's global role.

By streamlining the payment process and making it more accessible to foreigners, China aims to encourage tourism, facilitate trade, and promote ongoing economic engagement. These efforts solidify China's position as a global economic powerhouse and highlight the role of the digital yuan as a catalyst for international economic interactions.

Editor: CH

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