The digital yuan, China’s central bank digital currency (CBDC), is being used as a security element in car prepurchase payment settlements. According to local media reports, a pilot test that allows customers to pay for their cars with digital yuan was established in early February in Shenzhen, and several customers are already purchasing their vehicles using this system.
China Launches Digital Yuan Car Prepurchase Payment Pilot in Shenzhen
The digital yuan, the Chinese central bank digital currency (CBDC), is starting to be used in organized car repurchase payments. Local media reported that the Market Supervision Bureau in Pingsham, a district of Shenzhen with 400,000 citizens, and the Agricultural Bank of China had partnered to establish a pilot test for car payments.
The test was organized around the advantages of using the digital yuan, allowing a smart lock in the users’ payments that can be removed only after the delivery of the car. The first batch of consumers that participated in the pilot in early February deposited their funds using the “Intelligent Payment and Peace of Mind” system of the Agricultural Bank of China and are waiting for the delivery of their cars.
The system will take care of the distribution of the funds once the delivery is completed, automatizing the flow of payments and regularizing the delivery of highly demanded cars in the market.
Mr. Wang, one of the participants in the project, stated that while the consumers acquire these cars from authorized dealers, delivering a large amount of funds in advance is always a cause for concern. With the use of the digital yuan car prepayment system, the service is guaranteed, and the funds are safer.
Also, a more comprehensive prepayment program has been launched in Pingsham, specifically in the Longping Tianhong Business District. There, 50% of the prepaid merchants have signed to use the digital yuan for prepaying catering, education, training, and other services in alliance with banks.
Source : Bitcoin News by Sergio Goschenko / Feb 23, 2024