Innovative Applications of Digital RMB in Public Transportation Payment Field

In recent years, there has been a global trend in exploring central bank digital currencies (CBDCs). According to a 2022 report by the Bank for International Settlements, 90% of central banks worldwide are currently involved in CBDC exploration. Notably, the People’s Bank of China has taken the lead in CBDC research and was the first to announce the launch of an official CBDC. The introduction of the digital RMB has several significant implications, including strengthening domestic financial regulation, combating corruption, tax evasion, and money laundering, as well as facilitating the implementation of public welfare policies like fiscal subsidies for specific consumption areas. This paper provides a summary of the global origins, development, and performance of digital currencies, focusing on the integration of digital RMB in the public transportation sector in pilot cities. By examining the case of ShenzhenTong Company and its use of soft and hard wallets for public transportation payments, this paper also discusses potential future applications of digital RMB in conjunction with smart contract technology. Overall, this paper aims to provide recommendations for incorporating innovative digital payment methods into Chinese public transportation, expanding payment options for rail transit, promoting industry diversification, and offering insights for the application, promotion, and integration of digital RMB with emerging technologies such as smart contracts.