China accomplished the pilot for e-yuan salary payout in Xiong’an

China accomplished the pilot for e-yuan salary payout in Xiong’an

BUSINESS & ECONOMY | Jun 16, 2021 | WOZINGA NEWS

China accomplished the pilot for e-yuan salary payout in Xiong’an

  • The first CBDC pilot for the salary payments as digital yuan in Xiong’an New Area was successful. 
  • China aims to conduct a greater scope of e-yuan trials in various cities before the Beijing Winter Olympics in 2022.

By Marielle Petere Wozinga Journalist

China has completed the first Central Bank Digital Currency pilot for the salary payments as digital yuan in Xiong’an New Area, the government’s site announced.

On June 12, the builders and subcontractors received their digital yuan salary. It became possible because of the collaboration of government agencies and institutions. Also, some other Asian countries follow China’s economic move in establishing CBDC.

China: E-yuan wage payouts

The blockchain-powered wage payouts became successful with the cooperation of China’s National Development and Reform Commission, the PBoC branch in Shijiazhuang, and the Bank of China Hebei Xiong’an branch.

In this case, Bloomberg released an article on June 11 about digital currency wallets. Mu ChangChun is the director-general of China’s central bank on Digital Currency Research Institute.

Based on the statement of Mu during the Lujiazui Forum in Shanghai, the digital yuan is now available in both digital and physical wallets. At the same time, either personal or public accounts could use it.

 

E-yuan trials before Beijing Winter Olympics

When it comes to users’ demands, Mu explained that the design of wallets shows that they consider users’ wants. Wallets are set based on the purpose of use, preferences for both physical and digital, and the users’ credit limits.

Meanwhile, the People’s Bank of China aims to conduct a greater scope of e-yuan trials in various cities before the Beijing Winter Olympics in 2022.

Mu said that consumers responded positively to the testing program. It is because of the demand and dominance of online payments platforms, such as Tencent Holdings Ltd.’s WeChat Pay and Alipay of Ant Group Co.

In addition, Mu restated his comments about the availability of digital yuan in both WeChat Pay and Alipay last March and to provide backup, Bloomberg reported. It is because of the firms’ dominance in the market; it creates financial stability risks.

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