As China’s central bank digital currency (CBDC) – the digital yuan – takes off, Chinese business travelers are reportedly able to pay for their flight tickets with the CBDC. A collaboration between the China Merchants Bank and the Civil Aviation Administration has led to the creation of a platform that facilitates transactions in the aviation network. The platform enables companies and entrepreneurs to use the digital yuan for convenient payment of business air tickets, allowing passengers to access the new platform-based services.
China Travel Service, a travel agency based in Suzhou, has already used the platform to purchase tickets on behalf of clients. At the inauguration event on July 18, the Civil Aviation Administration and the China Merchants Bank announced that they would explore the digital yuan’s application in various areas of the civil aviation industry.
The People’s Bank of China, the country’s central bank, has been actively encouraging the use of the digital yuan in China’s transportation network. Beijing Daxing International Airport and Beijing Capital International Airport have partnered for the 2022 launch of a digital yuan initiative related to cargo. In addition, railway networks, light rail connections, and metro systems in the CBDC’s pilot zone have been upgraded to facilitate digital yuan payments without the need for power or network connections. Bus routes within the zone and highway tollbooths also accept digital yuan payments.
The City of Shenzhen revealed that over 7 million new digital yuan wallets have been created by its residents since the beginning of 2023. This demonstrates China’s determination to transform its economy by promoting the widespread adoption of the digital yuan.
