China inaugurated the first industrial park dedicated to the digital yuan

The industrial park will be dedicated to the development of the digital currency issued by the central bank

In a significant development, China opened a pioneering industrial park aimed at developing the digital yuan ecosystem, which is also known as the central bank digital currency (CBDC), according to Chinese press reports.

This innovative industrial park is located in the Luohu district in Shenzhen, near Hong Kong, and is beginning its journey with the arrival of nine resident companies. The district government, in an effort to boost the development of the digital yuan, has announced ten key initiatives, covering payment solutions, smart contracts, digital wallets and promoting the use of the digital yuan.

To encourage business participation in the park, attractive incentives are offered, including a free rental period of up to three years for residents. Commercial banks that choose to establish themselves in the park can receive financial support of up to 20 million yuan (equivalent to 2.7 million US dollars), while startups can be eligible for financing of up to 50 million yuan (or 6.9 million dollars).

Total government support has been set at an impressive 100 million yuan, in addition to offering loans at advantageous rates to promote development.

Among the park’s first tenants are prominent companies such as Hengbao, Wuhan Tianyu Information and Lakala Payment. Hengbao and Tianyu are dedicated to the production of payment cards, among other products, while Lakala Payment is a payment processor and Visa collaborator.

The Chinese government has implemented a series of measures to encourage the use of the digital yuan, which is currently in the pilot stage. Twenty-six cities are participating in this pilot and the CBDC is already accepted by more than 5.6 million merchants, a number that will undoubtedly continue to increase thanks to government incentives and technological advances.

Recently, the digital yuan application has incorporated an option that allows tourists to load money into their wallets using Visa and Mastercard. Despite this, adoption is considered slow, with only 261 million digital yuan wallets created by 2022.

K. Tovar

Source: Cointelegraph

(Referential image source: Aleksi Räisä, Unsplash)

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