Has China eliminated coins?

 

No, China has not legally eliminated coins, but they have nearly disappeared from daily transactions due to the overwhelming dominance of mobile payments. [1, 2]

While users on online forums like Reddit note that cash and coins have practically vanished from mainstream urban commerce, the Chinese government has actively stepped in to preserve physical currency. [1, 2, 3]

The Status of Coins in China Today

• Legal Mandate: The People's Bank of China (PBOC) explicitly prohibits businesses from rejecting physical currency. New regulations enforce strict penalties for any retailer, supermarket, or restaurant that refuses to accept banknotes or coins. [1]
• The Digital Reality: In practice, platforms like Alipay and WeChat Pay handle the vast majority of consumer purchases through QR codes. Many vendors do not keep change or traditional cash registers on hand, making it practically difficult—though not illegal—to pay with coins. [1]
• Generational and Rural Split: Physical currency, including coins, remains vital for elderly populations who may not navigate mobile payment technology, as well as in remote rural areas where digital adoption is slower. [1, 2]
• State-Backed Digital Currency: The government continues to pilot and expand its own digital currency, the e-CNY (digital yuan), to run alongside physical cash rather than permanently replacing it. [1, 2]

Do street vendors and beggars use coins?

 No, street vendors and beggars in China rarely use coins anymore. Instead, they have almost entirely shifted to mobile payments using QR codes. [1]

How They Accept Payments

• Laminated QR Codes: Street vendors and beggars typically display printed QR codes for Alipay or WeChat Pay.
• Around the Neck: Many individuals hang these printed QR codes around their necks for easy scanning.
• Smartphones: Most vendors and individuals use budget smartphones to track incoming digital transfers.
• Instant Notifications: Vendor phones run audio alerts to announce successful payments instantly in loud street environments. [1]

Why the Shift Happened

• Fewer Physical Wallets: Everyday consumers stopped carrying physical wallets, cash, and coins entirely.
• No Change Needed: Digital transactions eliminate the need for vendors to carry and count small, heavy coins for change.
• Zero Transaction Cost: Personal QR codes allow peer-to-peer transfers without fees, making it accessible for everyone. [1, 2]