Money vanishes in China
(MENAFN) Cash has nearly vanished from everyday life in China, with digital payment platforms like WeChat Pay and Alipay becoming the primary method of transaction, Le Monde reported. From cafes and supermarkets to taxis and market stalls, most purchases are now completed by scanning QR codes rather than exchanging coins or banknotes.
These two mobile apps have become indispensable in daily life, with their logos visible at nearly every point of sale. Many businesses have eliminated traditional cash registers, and vendors often no longer accept cash at all. According to Le Monde, only older generations still routinely use physical money, while the rest of society has fully embraced digital payments.
The trend is especially apparent in cities, where even small fruit vendors and local shopkeepers prefer mobile payments. Taxi drivers rarely accept cash, and many small stores don’t carry enough change, further discouraging its use.
The widespread adoption of mobile payment apps has also reduced the everyday role of traditional banks. Young people in China often only deal with banks for major transactions, such as applying for mortgages. In response, the People’s Bank of China has been developing a central bank digital currency—the digital yuan—to maintain oversight and control of the monetary system.
Pilot programs for the digital yuan began in 2019, and an official app launched in 2022. Although authorities claim 260 million accounts have been opened, the currency has yet to become part of routine daily life due to the overwhelming convenience and dominance of private apps.
Efforts to promote the digital yuan have also been hampered by setbacks, including the 2024 arrest of Yao Qian, a former central bank official linked to digital currency development, on corruption charges tied to tech firms. Despite this, Beijing continues to push for the digital yuan’s international use, aiming to reduce dependence on the U.S. dollar and encourage a diversified global monetary system.
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