Offline e-CNY transactions with SIM cards will be available only to select Android devices in a few trial regions.
An innovative payment platform that functions offline is in trials by the Bank of China, one of the nation's major state-run banks.
The experimental platform, crafted exclusively for China's central bank digital currency (CBDC), the e-CNY, hinges on special SIM cards.
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The development was unveiled on the bank's July 10th social media announcement. Based on the message, the pilot was launched as a part of a collaboration with telecommunications providers China Telecom and China Unicom.
The proposed mechanism allows users with an e-CNY app and "super SIM cards" to complete transactions via near-field communication technology. The payment processing method doesn't require phones to be turned on. Just a tap on the point-of-sale terminals with their phones is all that customers need to do to proceed with the payment.
Though the SIM card payment functionality is currently limited to select Android devices in a few trial regions, this is seen as a significant step forward. It is worth noting that the People's Bank of China debuted an experimental version of the e-CNY app in early 2022.
This trial is part of China's broader plan to make the digital yuan more versatile for Belt and Road Initiative projects and international trade. Future applications include using the e-CNY for tax payments and utility services in urban areas.
Meanwhile, in the Chinese city of Jinan, the digital yuan has been introduced as a payment method for public bus rides across ten routes. To use this service, passengers must download the e-CNY app, top up their accounts and scan the app's QR code at the bus payment terminal.
