Digital yuan trade beats Visa at Winter Olympics

According to reports, on the opening day of the Beijing 2022 Winter Olympics, more transactions were made with China’s central bank digital currency than with Visa.

In a report in The Wall Street Journal on Wednesday, a person familiar with the matter said that the digital yuan saw significant trading volume on Feb. more than Visa. However, many of the retail stores that allow payments in China’s central bank’s digital currency — the digital yuan — are outside the quarantine “bubble” of Olympic athletes, journalists and staff.

According to the report, people inside the "bubble" can choose to pay for goods or services with cash, Visa and digital yuan, and there are many vending machines that allow people to exchange fiat currency for e-yuan. Combined with the possible intent to reduce contact between individuals to prevent the spread of Covid-19, it appears that the country's digital currency is overtaking Visa.

According to reports, the Beijing 2022 Olympic Games Organizing Committee said: "The use of digital renminbi instead of cash payment can effectively reduce direct contact between people and reduce the risk of the spread of the new coronavirus."

While many retailers in China generally accept payments using mobile apps such as Alipay and WeChat Pay, these methods were not allowed at the Winter Olympics due to an exclusivity contract with Visa. According to reports, the credit card company has not restricted payment methods for the digital yuan, possibly because it is awaiting approval for a domestic license application to operate in China.