China's central bank digital currency (CBDC), the digital yuan, is now being utilised as a form of payment in the automotive industry, specifically for securing car prepurchase settlements.

This innovation was introduced through a pilot program initiated in Shenzhen in early February.

The initiative allows customers to use digital yuan to facilitate their vehicle purchases, marking a significant milestone in the wider adoption of the digital currency in the country's financial transactions.

Several customers have already taken advantage of this new payment method, indicating a positive reception and potential growth in its use across different sectors.