China central bank urges wider acceptance of cash as payments go digital

China’s central bank has called for wider acceptance of cash in economic activities and vowed to punish those who refuse to accept cash payments in the wake of a widening gap in access to digital services.

China’s online payments via barcodes and third-party payment apps such as Ant Group’s Alipay and Tencent Holdings’ Tenpay have gained in popularity over the years on government policies to promote innovation.

Some merchants and institutions have become reluctant to accept cash due to reasons such as cost control or user experience, with the trend accelerated by the Covid-19 pandemic, the People’s Bank of China (PBOC) said in a notice on Tuesday.