The digital yuan had been promoted in more than 14,400 offline stores in Huzhou, East China's Zhejiang province as of June 12.
Huzhou joined the trials for the digital renminbi, or e-CNY, in China at the beginning of April.
The People's Bank of China, the nation's central bank, on April 2 released the list of new regions taking part in the e-CNY trials. Among them are the six Chinese cities - Hangzhou, Ningbo, Wenzhou, Huzhou, Shaoxing and Jinhua - that will be involved in the 19th Asian Games.
As of June 12, 353,000 digital yuan wallets, including 333,600 that are privately owned, had been opened in Huzhou.
A resident surnamed Li said that digital yuan wallet is more convenient to use as compared with third-party payment platforms, as the digital yuan in the wallet can be used without an internet connection.
A businessman in the city's central urban area said that the most attractive thing about the digital wallet is that users are not charged for withdrawals or transfers, and such a policy would result in big savings for him.
Huzhou has been actively expanding the application of the digital yuan.
Payment scenarios for shopping, administrative services, life services, culture and tourism have been rolled out in the city, according to local financial supervision authorities.
To further promote the digital yuan, local banks have unveiled a string of preferential policies. People, for example, can enjoy some discounts after completing a certain amount of transactions using digital yuan wallets.