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China remains at the forefront of CBDC adoption on a global scale.
The Chinese city of Changshu has told workers in the public sector that they will start receiving their full salaries in digital yuan. According to the South China Morning Post, the new payment regime will be in effect from May 2023. And, it is expected to affect many employees including doctors, teachers, and even reporters.
A local media report also confirms the notice as being originally issued by the city’s financial authorities. Tagged as “Notice on the Implementation of Full Salary Digital Renminbi Issuance,” the initiative is part of China’s broader aim to bolster the adoption of its CBDC.
Recall that Changshu is located in the Jiangsu province of China, and this is not the region’s first CBDC-focused attempt. In Q1 2023, Jiangsu initiated a pilot program for the digital yuan. Per local reports at the time, the aim is to establish a system that works efficiently by 2025.
Changshu City itself has been doing its part to promote the CBDC in certain areas. According to another report, the city explored the use of digital yuan in cases such as medical bills, public transport, gas, water, and groceries shopping.
China Sets the Pace with Digital Yuan Adoption Strategy
Meanwhile, by opting to pay workers’ full salaries in digital yuan, Changshu City is now the 26th Chinese region to have adopted the CBDC rollout. This shows great progress, considering that only last July did Taicang – the first region to offer full wages in digital yuan – pioneer the efforts.
Also, multiple Chinese city governments gave the adoption process a huge boost during the Lunar New Year celebrations on February 6. At the time, they gave away over 180 million (approximately $26.5 million) worth of the CBDC.
Despite this wide push for adoption, it should be noted that China has not had much luck convincing Hong Kong residents. As reports claim, only about 625 individuals signed up within the first four days of the digital yuan wallet’s launch. This was despite the government’s efforts to subsidize the purchase for CBDC holders by about 20%.
Nonetheless, China remains at the forefront of CBDC adoption even on a global scale.