According to a recent report, Beijing is pressuring fast food chain McDonald’s to back the digital yuan ahead of the China Winter Olympics slated for February 2022. The report notes that China is also pushing companies like Visa and Nike to join the deployment of central bank digital currency (CBDC).
Chinese government pushes McDonald’s, Visa and Nike to accept CBDC
The People’s Republic of China is preparing for the full deployment of the CBDC in February 2022, with the introduction of the Beijing Winter Olympics. According to anonymous sources from the Financial Times (FT), the Chinese government wants McDonald’s to adhere to the digital yuan. FT notes that a large number of McDonald’s restaurants in Shanghai are currently testing the Chinese CBDC.
Now Beijing is pressuring the company itself to have more McDonald’s restaurants follow Shanghai’s lead. A source from McDonald’s told FT, “Shanghai is our pilot city and we will learn from customer response.” The information about the pressure exerted by the Chinese government comes from sources “close to the Chinese financial regulators”, underlines the report.
China prepares to launch Winter Olympics – Digital yuan tests continue to rise
China seems closer to the digital yuan launch every day, as news of the tests leaked to the media on a regular basis. For example, two leading financial institutions, China Construction Bank (CCB) and Bank of Communications (Bocom), are testing the CBDC for investment funds and insurance services.
For the first time, the Chinese CBDC was put to contribution on the country’s futures market at the end of August. In mid-July, the country released the Digital Yuan White Paper, which outlined smart contracts and tracked large transfers.
On July 10, the digital yuan wallet was opened to 10 million Chinese citizens, and the next day, a report stated that more than $ 40 million in “red digital yuan envelopes” had been scattered since the start of the project. The country appears to be ready to launch the CBDC by the 2022 Winter Olympics, but it is only three months away.
Meanwhile, with China’s CBDC further ahead than most countries, Federal Reserve Chairman Jerome Powell said in late September that he did not think the United States was behind the eight in terms of launch of CBDC.
What do you think of the Chinese government urging McDonald’s, Visa and Nike to accept the digital yuan before February 2022 for the Beijing Winter Olympics? Let us know what you think of this topic in the comments section below.
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