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January 12, 2021

Chinese Bank Launches ATM Allowing Users To Convert Cash to Digital Currency

By Daily Hodl Staff

A Chinese bank is unveiling automated teller machines that allow users to deposit cash and convert them into digital currency.

The Agricultural Bank of China (ABC), one of the largest banks in the world by assets, launched a pilot program that allows users to move their cash to digital renminbi (RMB), according to the Shenzhen News Network.

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The bank rolled out several ATMs across the province to facilitate the adoption of the digital currency, says Zou Hua, the manager of ABC’s digital RMB innovation lab.

The media outlet also says Shenzhen conducted a lottery dubbed as digital RMB red envelopes amounting to 20 million yuan worth about $3 million to further promote the adoption of the digital yuan.

100,000 Shenzhen residents received digital RMB red envelopes with a value of 200 yuan each.

Holders of the digital RMB can also pay for goods and services at point-of-sale terminals from their mobile phones. Zou says the number of merchants participating in the program has more than tripled.

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“With the further deepening of the pilot, the use of red envelopes (monetary gifts) this time has expanded from more than 3,000 merchants in Luohu to more than 11,000 in the city, and the consumption format is very rich.”

The Shenzhen city publication adds that the Agricultural Bank of China intends to build on the progress and experiment with using the digital yuan in other functions such as paying fees for public services.

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Featured Image: Shutterstock/Alexander Supertramp