China opened an industrial park dedicated to developing the digital yuan ecosystem on October 11, according to Chinese press reports. This is the first park of its kind dedicated to central bank digital currency (CBDC), also referred to as e-CNY.
The industrial park is located in the Luohu District of Shenzhen City, adjacent to Hong Kong. It opens with nine residents. According to reports, the regional government announced ten “initiatives to promote the development” of the yuan’s digital ecosystem It includes Payment solutions, smart contracts, hard wallets and promotion of digital yuan.
Residents are offered incentives that include free rent for up to three years. Commercial banks can get up to 20 million yuan ($2.7 million) to settle there, and startups are eligible for up to 50 million yuan ($6.9 million). The total government support is scheduled to reach 100 million yuan ($13.7 million). Loans are also offered at special interest rates.
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One of the park’s first residents He was Hengbao information, Wuhan Tianyu and Lakala payment. Hengbao and Tianyu produce payment cards, among others. Lakala is a payment processing company and Visa partner.
The Shenzhen Digital RMB Zone officially launched operations on Wednesday, according to a press conference held in the southern Chinese city of Shenzhen. https://t.co/Pi3Z6bjUvp pic.twitter.com/SehYDnhoUu
– Xinhua Chinese News (XHNews) October 12, 2023
Wuhan Tianyou Deputy Chief Information Officer Zeng Zhaoxiang told China Daily:
“We hope to achieve synergistic effects in the industrial chain and jointly promote the development of the park.”
China has taken several measures to promote the use of the digital yuan, which has officially entered the pilot phase. Twenty-six cities are participating in the pilot program, and CBDCs are accepted by 5.6 million merchants – a number that is likely to grow steadily thanks to government encouragement and technological development.
The digital yuan app recently added an option for tourists to use Visa and Mastercard to add to their wallets. However, with 261 million digital yuan wallets created as of 2022, adoption is slow.
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