China is piloting a central bank digital currency (CBDC) during the 2022 winter Olympics as the rest of the world remains at the research and development stage.
The digital yuan (eCNY) is now being offered to athletes and foreign visitors to Olympic Village in Beijing just like cash or Visa cards.
The rollout is an essential pilot initiative for digital currency since the company started exploring CBDCs in 2019.
The implementation of a digital yuan for public use was first projected in early 2020 when the Chinese government agreed to plans to develop an eCNY before the start of the Olympics.
The digital yuan connects a person’s phone number to transactions occurring on an application and has the capability to transfer between various users by tapping phones.
The eCNY is a legal tender and could be exchanged via QR or bar codes without intermediaries.