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Digital Yuan Takes Flight: China’s CBDC Strategy for Tourism
As the summer vacation season sets in, China is turning to its digital yuan to tap into the travel market. Chinese banks, airlines, and retailers are encouraging travelers to use the Central Bank Digital Currency (CBDC) on their platforms. A key player, Bank of China (Hong Kong), kicked off a “Cross-Border Shopping Festival” on July 18th, offering mainland residents the option to pay for goods and services with the digital yuan at over 200 stores. This campaign aligns with the traditional tourism season, running through July and August.
In a move to streamline cross-border transactions, local merchants are upgrading their systems to accept the digital yuan, as stated by the Deputy General Manager of the Digital Currency Special Working Group of Bank of China Hong Kong. It’s important to note that the Hong Kong Dollar (HKD) and the Chinese yuan (CNY) are separate, non-exchangeable currencies.
Further expanding its reach, the Civil Aviation Administration of China and China Merchants Bank have initiated an online ticket booking platform accepting the digital yuan. They aim to bolster digital economy adoption and explore its application in the civil aviation industry. Additionally, the government plans to promote the digital currency at the Chengdu Grand Games 2023, an international university sports event. They might provide digital yuan wallets for participants and viewers, a strategy similar to the Beijing Olympics 2022.
China’s CBDC journey began with a test pilot in July 2020. Since then, the government has made concerted efforts to boost the digital yuan’s adoption, including its promotion at the Beijing Olympics and facilitating salary payments in select provinces. Despite recent moves towards crypto, like the resumption of retail trading in Hong Kong and Web3 development promotion, the government remains focused on increasing the digital yuan’s adoption and liquidity. Read more here and here.
Building Bridges: Advancing Crypto through Strategic Partnerships and User-Friendly Platforms
The digital yuan’s integration into China’s air travel industry offers valuable insights for emerging crypto products like Zucoins and its Splitchain network. One lesson is the importance of partnerships. The collaboration between China Merchants Bank and the Civil Aviation Administration of China has not only enabled the use of digital yuan for air tickets but also opened up new services accessible via the platform. Similarly, Zucoins and others could seek strategic alliances with key industry players, leveraging its unique features like two-way transactions and efficient processing, to broaden its usability in various sectors.
The timing of China’s campaign is strategic, coinciding with the summer vacation and traditional tourism season. This shows the potential value of aligning cryptocurrency promotions with key events or seasons. What’s more, China’s plan to promote the digital yuan at a major sporting event highlights the potential of large-scale events for boosting cryptocurrency adoption. Offering exclusive benefits for event-goers using Zucoins, such as discounts or early access to tickets, could stimulate interest and adoption.
China’s digital yuan campaign is also notable for its user-focused approach. The CBDC is being promoted as a convenient payment option for everyday transactions, from buying goods to booking air tickets. This focus on practical, daily use cases for Zucoins aligns with the project’s focus on increasing productive uses.
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All the best,
Peter & Rob
MyZucoins