The use of e-CNY in such scenarios will help give a wholesome idea of how the currency works with the masses.
For the first time ever, JD has opened up payment options for China’s digital yuan on its e-commerce platform during Singles Day. Even when China’s digital currency, called the e-CNY has not been formally made its debut into the public arena, the acceptance of one of the largest e-commerce businesses in China has brought the currency some much-needed limelight.
JD.com, also known as Jindong and initially as 360buy, is one of the two massive B2C online retailers in China by transaction volume and revenue.
As per JD records on November 11, over 100,000 had accessed the e-CNY on the company’s application during the Singles Day promotion period (October 31st to November 11th). The instructions need users to type “e-CNY” on JD’s app and then download China’s digital currency app. The users who avail of the e-CNY currency will receive 15 Yuan. The digital currency venture initiated by JD has been worked on along with China Construction Bank.
JD and Digital Yuan
It should be highlighted that China’s digital yuan is not a traditional cryptocurrency. It is, on the contrary, a digital form of the country’s currency, created to substitute coins and cash in distribution. It will be formally authorized via banks and other financial organizations by the Central Bank (People’s Bank of China) when formally distributed among the citizens.
During the past two years, several cities around the country have been conducting trial sessions wherein they offer free money to citizens through lotteries. Since a solid foundation for a countrywide launch has not been decided upon, such mock sessions and trials are still in practice.
In December last year, JD became the first e-commerce firm to accept the country’s digital yuan on an online platform. In this particular trial, around 20 million yuan ($3 Million) was given as the award money in a lottery for residents in Suzhou. Subsequently, in April, the company claimed that it had remunerated some of its employees using e-CNY.
Singles Day in China, is the biggest shopping event in the world and is celebrated on the 11th of November. It is an event when China’s e-commerce enthusiasts win bulky discounts and bring in hundreds of millions of dollars. This year, however, Chinese tech and e-commerce giants like Alibaba and JD.com had to deal with a slower economy aligned with regulatory scrutiny in the tech sector.
The use of e-CNY in such scenarios will help give a wholesome idea of how the currency works with the masses. From December 11 to June 18 this year, around 450,000 users have availed e-CNY payments on the JD app and traded around 100 million Yuan in total.