The Agricultural Bank of China allows customers to deposit and withdraw digital yuan at ATMs as a trial service in Shenzhen.
Agricultural Bank of China (ABC), also known as AgBank, is one of the “Big Four” banks in China. According to Shenzhen Daily’s report, AgBank is allowing customers to deposit and withdraw digital yuan to or from their current or savings accounts.
China is accelerating its push toward the adoption of its digital yuan, or Digital Currency/Electronic Payment (DCEP), which the government hopes will replace some physical cash in circulation.
The People’s Bank of China (PBoC) have been working with banks and corporations on public pilots and applications to gauge the user experience on the digital yuan.
Among the efforts and initiatives, the Shenzhen government has held two lotteries handing out millions of digital yuan to the public.
The first lottery was completed in October 2020, involving a total of 10 million digital yuan (around US$1.5 million) to winners. And earlier this month, the second lottery has distributed a total of 100,000 “red packets”, with winners awarded 200 digital yuan each.
Other countries and central banks are continuing with their trials; China looks to be closing in to be the first major nation to officially launch a digital alternative to traditional cash on a nationwide basis.
Not A Cryptocurrency Like Bitcoin
China wants the digital yuan to help break the US dollar’s dominance in the global financial system, and to help domestic monetary authorities maintain greater control over fund flows.
Unlike Bitcoin and other cryptocurrencies, which are owned by their users, China’s digital yuan is a sovereign currency issued and backed by China’s central bank.
The Digital yuan will not use blockchain technology, which allows transactions to be validated without the need for banks.
Additionally, China’s central bank will keep databases tracking the flows of digital yuan from user to user.