After launching the new initiative, the China Merchants Bank and the Civil Aviation Administration of China are eager to explore other CBDC use cases in civil aviation.
China's pilot program for its central bank digital currency (CBDC), known as the digital yuan (e-CNY), is moving forward, with business travelers soon expected to be able to pay for plane tickets using e-CNY.
According to the local news portal CAACNEWS, the project is a joint venture between the China Merchants Bank and the Civil Aviation Administration of China.
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Together, the institutions have launched a platform that allows businesses and entrepreneurs to pay for their plane tickets using the digital yuan. Moreover, the platform will also introduce additional services accessible through the CBDC for passengers.
The usefulness of this platform is already evident, as China Travel Service has reportedly utilized it to purchase flight tickets on behalf of its customers.
During the official launch on July 18th, both the Civil Aviation Administration and China Merchants Bank advocated for an expanded application of the CBDC. The institutions committed to jointly investigating how the digital yuan could be implemented across various sectors of the civil aviation industry.
Based on several reports, the People's Bank of China has been actively encouraging digital yuan use within China's transportation system.
In the pilot zone of the CBDC, upgrades have been made to railway networks, light rail connections, and metro systems to enable smooth digital yuan transactions even without power or network connections. Moreover, bus routes and several highway toll booths have begun accepting digital yuan payments.
Apart from the transport sector, the city of Changshu started paying salaries to all civil servants in digital yuan.
The integration of the digital yuan into China's transportation network, particularly air travel, is a clear indicator of the country's ambition to promote its central bank digital currency, setting a new standard for financial transactions.
