The government is providing incentives for new citizens to move here and create hard wallets, smart contracts, payment systems, and advertising for the virtual yuan.
According to sources in the Chinese press, China inaugurated an industrial park on October 11 with the goal of fostering the ecosystem for the digital yuan. This is the first park of its kind devoted to the e-CNY, commonly known as the central bank digital currency (CBDC).
The industrial park is situated close to Hong Kong in Shenzhen’s Luohu neighborhood. Nine people will live there when it opens. Ten “initiatives to boost the development” of the digital yuan ecosystem, including payment methods, smart contracts, hard wallets, and digital yuan marketing, have reportedly been unveiled by the district administration.
Up to three years of rent-free living are among the incentives available to tenants. Startups are eligible for up to 50 million yuan ($6.9 million), while commercial banks may earn up to 20 million yuan ($2.7 million) for locating there. The total amount of government assistance is 100 million yuan ($13.7 million). Also available are loans with favorable interest rates.
Hengbao, Wuhan Tianyu Information, and Lakala Payment were among of the park’s original occupants. Payment cards are among the products made by Hengbao and Tianyu. Lakala is a Visa partner and payment processor.
Zeng Zhaoxiang, executive deputy director of Wuhan Tianyu Information, stated to China Daily:
“We want to create synergistic effects throughout the industrial chain and work together to advance park development.”
China has implemented several initiatives to encourage the use of the digital yuan, which is now in the experimental phase. 26 cities are taking part in the trial, and 5.6 million businesses have accepted the CBDC. As a result of government support and advancements in technology, this figure is projected to continuously increase.
Tourists now have the opportunity to connect Visa and Mastercard to their digital wallets via the digital yuan app. However, adoption is seen as slow, with 261 million digital yuan wallets generated as of 2022.
