China Implements Digital Yuan for Car Prepurchase Payments in Shenzhen Pilot

China’s central bank digital currency (CBDC), the digital yuan, has been integrated into car prepurchase payment settlements in a pilot test initiated in Shenzhen. Collaborating with the Market Supervision Bureau in Pingsham and the Agricultural Bank of China, the pilot program allows customers to pay for their cars using the digital yuan, enhancing security and streamlining payment processes. The system employs smart locks to ensure payment security until the delivery of the vehicle, automating payment flows and facilitating the purchase of highly sought-after cars. Participants in the pilot have expressed satisfaction with the system, citing increased security and peace of mind in their transactions. Additionally, an expanded prepayment program in Pingsham’s Longping Tianhong Business District includes various merchants accepting digital yuan for prepayments in sectors such as catering and education, further promoting the adoption of China’s CBDC beyond automotive transactions.