More reports of China continually developing the underlying infrastructure for its upcoming central bank digital currency commonly referred to as the Digital Yuan. The latest reports reveal that one of the four largest state-owned banks in China is now testing the CBDC on its ATMs located in Shenzen.
According to local media reports on Sunday, the Agricultural Bank of China is allowing ATM machines in select Shenzen braches to convert customer funds from their savings accounts or cash into digital yuan via their smartphones and vice versa.
The report adds that these digital yuan-supported ATMs are a part of the nation’s on-going ongoing real-life test of its central bank digital currency. The Shenzhen government recently announced that it will be giving away 100,000 red packets via a lottery to the locals with each packet worth 200 digital yuan, or $30, totaling $3 million.
The reports added that the bank has also launched a “Digital Yuan Innovation Lab” division this year to develop various applications that can and will support the use of digital yuan. The recent test is the second trial for digital yuan in the city of Shenzhen after the first trial conducted back in October.
Zou Hua, manager of the bank’s Digital Yuan Innovation Lab, said the ATM rollout was part of efforts to guide citizens towards the eventual digitization of cash.
“Agricultural Bank has taken the lead in launching the ATM cash deposit and withdrawal function in the industry to guide Shenzhen residents to adapt to the digitization of cash and explore service transformation,” he said
As such, additional features that are supported for China’s CBDC at this time include the digital yuan ATM as well as the offline touch-to-pay function.
More developments for Digital Yuan
As previously reported by The Daily Chian, the news comes a day after China rolled out a card-wallet for the digital yuan. The card-wallet is being used to test the functionalities of the digital yuan and this testing will take place in Shanghai.
The first use of this wallet-card will be carried out by the staff at the Shanghai Jiao Tong University School of Medicine’s Tongren Hospital. They used the card to pay for food in the cafeteria through the use of a point-of-sale device. The card has a screen at the top right corner which displays relevant information like how much money is left on the card.