According to a recent report, Beijing is pressuring fast-food retailer McDonald’s to endorse the digital yuan in the run-up to the 2022 Winter Olympics in China.
The People’s Republic of China is preparing to launch the CBDC in its entirety in February 2022, coinciding with the start of the Beijing Winter Olympics.
According to unnamed sources quoted by the Financial Times (FT), the Chinese government wants McDonald’s to adopt the digital yuan.
According to the Financial Times, a big number of McDonald’s restaurants in Shanghai are currently putting China’s CBDC to the test.
Beijing is now pressuring McDonald’s to follow Shanghai’s trend and open more locations.
“Shanghai is our experimental city, and we will learn from customers’ responses,” a McDonald’s insider told.
Monica Jasuja, Product Management Leader and financial advisor takes a dig into the matter and posted a Tweet regarding the news.
Further replying to a user she clears the the e-CNY use in Olympics saying “Soft mandate is being highlighted”.
China appears to be getting closer to deploying the digital yuan every day, since news of the testing is regularly leaked to the public.
China Construction Bank (CCB) and Bank of Communications (Bocom), for example, are putting the CBDC to the test for investment funds and insurance services.
At the end of August, China’s CBDC was leveraged for the first time in the country’s futures market. The country released a white paper on the digital yuan in mid-July, which discussed smart contracts and tracing huge transfers.
People who oppose CBDC argue that it will increase money surveillance and that the government should not accept the regulations and social credit system for cryptocurrencies.
On July 10, ten million Chinese individuals were given access to the digital yuan wallet, and the following day, a report stated that over $40 million in ‘digital yuan red envelopes’ had been distributed since the initiative began.
The government appears to be on track to establish the CBDC in time for the 2022 Winter Olympics, but that deadline is only three months away.
Meanwhile, despite China’s CBDC being light years ahead of the rest of the world, Federal Reserve chairman Jerome Powell indicated at the end of September that he doesn’t believe the United States is behind the eight ball when it comes to launching a CBDC.
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