Digital Yuan Used in Car Preorders in China
Date: 2024-02-25 Author: Dima Zakharov Categories: BLOCKCHAIN
Digital Yuan in Car Preorders
In China's Pingshan district, located in Shenzhen with a population of 400,000, the digital yuan, China's central bank digital currency (CBDC), is being tested in payments for car preorders. This initiative is being conducted as a pilot project by the Market Supervision Bureau and the Agricultural Bank of China.
Advantages of Digital Yuan
The utilization of the digital yuan is explained by its advantage of locking users' funds, which can only be released upon car delivery. Early this February, the first batch of participating buyers deposited their funds using the "Intelligent Payment and Peace of Mind" system of the Agricultural Bank of China and are now awaiting the delivery of their ordered cars.
Automating Payment Flow
The system will take care of fund distribution post-delivery, automating the payment flow and streamlining the delivery of ordered cars.
Enhanced Security
One of the project participants, Mr. Wang, stated that although consumers purchase cars from official dealers, large prepayments always raise concerns. By utilizing the digital yuan for car preorders, the service provision is guaranteed, and funds are more secure.
