Jinan, the capital city of Shandong Province in eastern China, has taken a significant step towards promoting the adoption of the country’s Digital Yuan. The city has introduced digital yuan payments across its entire bus network, aiming to facilitate the use of the digital currency in everyday transactions.
During the pilot phase, CBDC payments were initially tested on two bus lines. Following the successful trial period, the city officials announced the full implementation of this new payment method on all bus routes, signaling their commitment to embracing the digital yuan.
Local media outlet Shunwang-Jinan Daily recently reported that Jinan has made significant technological upgrades to accommodate the digital yuan payments. The city has updated its card readers and bus route software, enabling passengers to conveniently pay their fares using the digital currency issued by the country’s central bank.
To encourage the adoption of the digital yuan, Jinan has implemented a rewarding system for passengers who choose to pay with the CBDC. The city is offering fare discounts to individuals who opt for this payment method. As per the announcement, each person can enjoy up to two discounted rides per day and a maximum of six discounted rides within a month, further incentivizing the use of the digital yuan.
This move by Jinan is part of a broader nationwide effort to promote the adoption of the digital yuan throughout China. Another Chinese city, Changshu, had previously announced on April 23 that it would begin paying civil servant salaries using the digital currency. The city emphasized that all levels of personnel in public service, public institutions, and state-owned units would receive their salaries in the form of the country’s CBDC starting from May.
China Expands Use of Digital Yuan in Belt and Road Initiative and Cross-Border Trades
In a significant move towards digitalization, China has taken further steps to promote its Central Bank Digital Currency (CBDC) in various sectors. In addition to its application in bus rides and civil servant salaries, the country has now implemented the use of CBDC in its ambitious Belt and Road initiative and cross-border trades.
The latest development came on April 24 when a comprehensive plan was unveiled in the Chinese city of Xuzhou to boost the adoption of CBDC in cross-border trade activities. Xuzhou, known as a key transportation hub, serves as a pivotal departure point for trains transporting goods to Europe.
This strategic move by China aims to leverage the advantages of CBDC technology, providing a seamless and efficient digital payment system for cross-border transactions. By incorporating the digital yuan into international trade, the country seeks to streamline processes, reduce costs, and enhance transparency in financial transactions.
Furthermore, the promotion of CBDC in cross-border trades has gained support from international partners. Notably, French bank BNP Paribas recently forged a partnership with the Bank of China (BOC) to facilitate the adoption of the digital yuan. This collaboration, reported by local media outlet the South China Morning Post on May 5, will enable BNP Paribas’ corporate clients to connect with BOC’s system, empowering them to conduct real-time transactions using the digital yuan.
The partnership between BNP Paribas and BOC signifies the growing interest from global financial institutions in exploring the potential of CBDCs and their benefits. By embracing the digital yuan, BNP Paribas aims to offer enhanced financial services to its corporate clients while capitalizing on the advantages of a secure and efficient digital payment system.