China is taking steps to make its central bank digital currency (CBDC), known as DCEP or e-CNY, more widely used. In May, government employees in Changshu will receive their salaries in the digital yuan. It includes those working in state-owned corporations and public sector workers such as teachers, doctors, and nurses. This move is part of the project’s planned national rollout and is expected to help popularize the use of the digital yuan.
Learn more about China’s DCEP and its development here.
Changshu Leads the Way in CBDC Adoption with e-CNY Payments
Changshu, a city in Jiangsu province in eastern China, is blazing the trail in the adoption of the Central Bank Digital Currency (CBDC). As part of the CBDC project, the city has been paying transit subsidies to government workers via the e-CNY since 2020. This move marks an unprecedented push from the Chinese government to encourage the use of its digital currency.
Other cities across China have been experimenting with the e-CNY in various ways, but Changshu is the first to use it to pay hundreds of thousands of people. This is a major milestone in the development of the digital yuan, and Changshu is leading the way.
China’s Digital Payment Revolution
China is leading the way in digital payments. It is with over 80% of its population owning smartphones and using digital payment apps to make everyday purchases. This has been made possible by the e-commerce boom of the past two decades. Now, the Chinese government is looking to take control of the digital financial system. Furthermore, to ensure that even digital payments are directly regulated by the central bank. This move could revolutionize the way Chinese citizens make payments. It could also have a lasting impact on the global digital payment market.
China’s Take on Central Bank Digital Currency
In 2020, the Chinese central bank made a major move in the world of digital currency by introducing the digital yuan. Blockchain-based Service Network (BSN), a Chinese state-backed digital infrastructure company collaborated to develop this digital currency. They created the digital yuan on BSN’s in-house blockchain network, making it the first of its kind.
This digital currency is set to revolutionize the way people transact. It could also potentially have a major impact on the global economy. With the digital yuan, China is showing the world that it is a leader in the digital currency space. Furthermore, they want to show that it is paving the way for a more secure and efficient future.
Centralized Control by the People’s Bank of China
The People’s Bank of China has introduced the digital yuan, a digital version of its national fiat currency. The Chinese government highly centralizes the digital yuan, despite its claim to blockchain technology, and it does not share many traits with cryptocurrencies. The central bank has been rolling out the digital yuan in phases. A number of cities tested it pilotly before they could roll it out nationally.
The People’s Bank of China issues and controls the digital yuan. It designs the digital yuan to replace physical cash and reduce the cost of transactions. Additionally, it also views the digital yuan as a way to increase the efficiency of the Chinese economy and promote the use of digital payments. The digital yuan is expected to be a major player in the global digital currency market with its centralized control.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
