China has recently tried to expand its digital yuan usage trials by paying government employees’ salary in the currency. According to reports, the e-CNY also uses in hospitals and other municipal services.
Expansion on Digital Yuan Experiment
According to recent reports, China is ramping up the testing of its digital yuan e-CNY. The Tianjin Municipal Finance Bureau instructed all government employees to begin establishing e-CNY wallets on Saturday. Some government personnel have already paid using the money.
According to a news statement from the Bureau, the Municipal Finance Bureau distributed wage subsidies in the form of digital yuan on April 26. It distributed to employees’ digital renminbi personal wallets, and the test project was a huge success.
Furthermore, there are numerous examples of the e-ongoing CNY’s acceptance in Chinese hospitals, particularly in the Guangzhou and Hangzhou regions. For example, according to a Zhejiang daily story, the Zhejiang Provincial Hospital accepts e-CNY payments.
One of the early users of the e-CNY is the Guangdong People’s Provincial Hospital of Traditional Chinese Medicine. They launched the service on April 29, and according to a recent report, the payment transaction takes only 30 seconds.
The digital software will test in cities across China, including Hangzhou, Wenzhou, Ningbo, Huzhou, Shaoxing, and Jinhua, as part of the pilot program. According to previous reports, the app’s transactions considers to be smooth after some testing.
The digital Yuan not only accepts at hospitals. According to sources, the Yuan is used for municipal services and public transportation such as metro, buses, trains, taxation, highway toll gates, and social insurance in 23 cities.
Popularizing e-CNY and APP
China was the first country to implement a digital currency. Total transactions using the e-CNY reached 87 billion Yuan, or $11.238 billion, by December 2021. However, there is still work to do to publicize the Yuan and increase its use.
According to the finance bureau, the e-CNY is a critical component of the country’s future economy. As a result, these salary-related measures center on advertising the digital Yuan and popularizing its qualities.
They also want to make it mandatory for banks issuing employee wages to use the e-CNY. However, they must double-check personal information and wallet codes before issuing salaries to guarantee that they are correct.
The CBDC Race
Ten central banks were already researching the notion of CBDC and how to issue it, according to a BIS survey of 81 central banks. Nigeria, Ukraine, Uruguay, Thailand, Sweden, the Bahamas, the Eastern Caribbean, and South Korea, according to some reports, are among the leading contenders in this race.