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Bank of Hainan begins to expand the scope of digital yuan in banking operations

Hainan has become one of the regions in China where the digital yuan is being tested

HAIKOU, June 21. /TASS/. The Bank of Hainan will introduce the digital yuan into circulation, in the future it will be widely used in banking operations in the southernmost Chinese province, reported the Hainan Daily.

According to the news outlet, the scope of application of the electronic form of cash in China will gradually expand in cooperation with the Bank of Communications of China (one of the five main state-owned commercial banks in the country). Earlier, these two financial institutions agreed to enhance cooperation in order to form a two-tier monetary system of a new type. According to it, commercial banks act as an intermediate link, interacting with the central bank and the population.

According to the headquarters of the Bank of Communications of China,  theBank of Hainan became the first regional financial institution on the island to join a pilot innovative program that in the future will replace paper money and coins in circulation with their digital counterpart. Over time, more and more Chinese debit card holders will be able to use it.

Hainan has become one of the regions in China where the digital yuan is being tested. Since the end of 2019, the authorities have also tested it in Beijing, in the cities of Shenzhen, Suzhou and Chengdu, in the Xiong'an new economic zone near the Chinese capital. In October 2020, the cities of Shanghai, Changsha, Xi'an, Qingdao and Dalian were added to the list.

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