China to Use Olympics to Test Digital Yuan

China will debut the digital yuan ahead of its Beijing Winter Olympics, which will go out to both athletes and spectators, Bloomberg reported Monday (Jan. 10).

That will be a new way to gauge the currency’s appeal among foreigners, and China has been looking to the games to show off how the digital yuan, or e-CNY, performs around the world.

The report notes that visitors will be allowed to either download an app or get a physical card to store the digital yuan. Visitors will be able to convert foreign banknotes into e-CNY at self-service machines.

Athletes and coaches will also have the option of getting wristbands to act as electronic wallets to pay for things.

The Winter Olympics, which will begin on Feb. 4, will be an opportunity for the People’s Bank of China to spread awareness about the e-CNY after making gains in trials at around a dozen regions across the country since 2020.

The event has also been set back already by various factors like boycotts and potential virus outbreaks.

It’s yet to be seen whether foreign athletes will adopt the digital coin, as there have been more political tensions around the games and worries over data risks.

However, there are convenience stores, cafes and other merchants that have the capacity to use the digital yuan. The report said that as of early November, around 140 million individuals had registered for a digital yuan account.

Bloomberg noted that China might push for nationwide adoption of the digital yuan ahead of the Winter Olympics, which could end up raising the yuan’s status as a global reserve and settlement currency.

PYMNTS recently reported that WeChat, the biggest Chinese messaging app, will accept the digital yuan. Media reports say this could mark a new milestone for acceptance of the digital currency.

Read more: Chinese Payments Giant WeChat to Accept Digital Yuan

According to the People’s Bank of China, the digital yuan might be a backup to existing payments giants.