A Chinese city intends to pay its public servants in digital yuan

Share IT

Key takeaways:

  • Beginning in May 2023, Changshu city officials will be paid their entire salary in digital yuan.
  • All levels of the city’s civil service, staff at public institutions, and employees of state-owned businesses are impacted by the decision.

The Chinese city of Changshu announced that it will begin paying its civil personnel with digital RMB, often known as digital yuan, in May 2023. 

The “Notice on the Implementation of Full Salary Digital Renminbi Issuance” was recently released by the Changshu City Local Financial Supervision and Administration Bureau and the Changshu City Finance Bureau, according to information from IT House on April 23. 

Teachers, medical personnel, technicians, journalists working for government-run media outlets, and employees of state-owned businesses would all be impacted by the change.

As Changshu becomes the first Chinese city to pay public employees in digital yuan, more Chinese cities may follow Changshu’s lead.

You can select digital RMB settlement registration, outpatient costs, etc. at a local Changshu hospital, whether it is a manual window or a self-service terminal, according to the Daily Economic News report. The hospital personnel also disclosed that they will receive their salaries in digital renminbi starting in the upcoming month.

Chinese city governments handed over more than 180 million yuan ($26.5 million) in digital RMB on February 6 to encourage CBDC use. The goal of this offer was to boost the public’s use of digital money.

The province of Jiangsu, where Changshu is located, already started a test programme for digital RMB in Q1 2023. A local paper states that the goal is to create an effective and practical digital RMB operation and administration system by 2025.

Employees’ private wallets, which they can access after opening them, will be utilised for receiving salaries in the form of digital RMB. Since it doesn’t require internet connectivity, this solution is safer as well as convenient for employees.

Despite the fact that cryptocurrencies are illegal, the measure demonstrates the government’s enthusiasm for the technology. Just last month, the Chinese government approved the development of the National Blockchain Technology Innovation Centre in Beijing, which would advance and research blockchain technology.

It is clear that China has been actively promoting the usage of the centralised digital currency and may have even considered it a tool to assist challenge the dominance of the US dollar.

The People’s Bank of China carefully selects commercial banks for the digital RMB system based on their capital and technological capabilities. Following a thorough examination procedure, it has chosen ten designated operating organisations.

Share IT
Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!