The Chinese Central People’s Bank of China (PBoC) has claimed that its program of digital yuan giveaways is driving CBDC adoption. According to the state-run newspaper People’s Daily, the Digital Currency Research Institute, the dedicated digital yuan arm of the PBoC, has stated that the vast majority of CBDC giveaways have been successful.
In an effort to encourage adoption, banks, tech giants, and city governments have been distributing millions of dollars worth of CBDC tokens and discount vouchers, as well as free hard wallets and wearables with smartcards.
Critics from around the world have said that these programs are not very successful, as CBDC transactions are less than 2% of China’s payments market. However, the institute’s data appears to refute this notion. According to the institute, more than 90% of the coupons or coins distributed in giveaway events have been redeemed, with some areas seeing a usage increase of over 15x.
The PBoC’s marketing strategy has been to partner with ecommerce giants such as JD.com and Meiutan, who offer introductory discounts and other offers to customers who pay with eCNY. However, the PBoC is no longer focusing exclusively on the benefits to retailers of the coin. Banks and other PBoC partners have been emphasizing the token’s role in cross-border trade, tourism, and domestic business.
Dong Ximiao, Chief Researcher and Senior Researcher at Fudan University, has asserted that the use of digital yuan technology and smart contracts would provide more adoption incentive for Chinese businesses and state-owned companies. Dong claimed that the coin would allow for the “monitoring of the entire process of fund issuance” and for governments, businesses, and others to “customize the conditions” and “fiscal subsidies” offerings.
The PBoC, along with its partners, has been focusing on overseas visitors in recent weeks, with a promotional video featuring a coffee shop released by the Industrial and Commercial Bank of China. The coin is now available in multiple languages on the official CBDC application, and coincides with China’s hosting of the Asian Games this year in Hangzhou, on October 8. Partner banks have created content that shows how international students can use the coin for payment.
