- China has been developing a CBDC and will now begin to deploy it across their nation.
- Personnel in public service, public institutions, and state-owned units at all levels in the city will be compensated with the digital yuan.
- China’s push for CBDCs has not had a warm welcome by its Chinese’s citizens.
According to local reports, the Chinese city of Changshu has stated that all civil servants in its jurisdiction will be paid their total salaries in digital yuan starting May 2023.
According to a notice issued by financial authorities in the city, civil servants — including those in public service, public institutions, and state-owned units at all levels — will be compensated in digital yuan.
An on-site staff member of a local hospital reportedly confirmed that the workforce would receive payments in digital yuan starting next month. In addition, reporters were told that employees could opt for digital yuan settlements through self-service terminals.
On Feb. 6, multiple Chinese city governments gave away over 180 million yuan ($26.5 million) worth of the central bank digital currency (CBDC) during Lunar New Year celebrations to boost adoption.
The Jiangsu province, where Changshu is located, previously initiated a pilot program for the digital yuan in Q1 2023. According to a local report, the objective is to establish an efficient, convenient operation and management system by 2025.
Hong Kong residents have not received the Chinese government’s push for CBDC adoption. In the first four days of the digital yuan wallet’s hard launch, only 625 residents had signed up.
The lack of adoption was evident, despite a 20% discount on purchases from 1,400 local vendors — subsidized by the government for CBDC holders.
