July 5, 2023

Chinese City Accepts Digital Yuan as Payment Method for Its Buses Routes

China's Jinan City

China’s Jinan City

The capital of China’s Shandong Province, Jinan, started to introduce the central bank digital currency (CBDC), digital yuan, as a method of payment across all its bus routes to encourage its usage, according to Cointelegraph

Starting this month, the Jinan Public Transport updated all its card readers and bus route software to allow passengers to pay for their tickets using CBDCs. Before implementing the new system in the whole transportation system, the Chinese city tested the introduction of CBDC payments on two bus routes. 

In a move to encourage the use of CBDCs, the authorities there give fare discounts for passengers who will pay in CBDCs. Each person could get up to two discounted rides per day and a maximum of six discounted rides in a month if they choose to pay with the digital yuan. 

It is worth mentioning that the civil servants of the Chinese city of Changshu got their May salaries in digital yuan, according to a notice issued by financial authorities in the city.

The notice said that all civil servants, including those in state-owned units, public service, and public institutions at all levels, would be paid in digital yuan starting from the next month, according to Cointelegraph.

In addition, civil servants have the option to opt for digital yuan settlements through self-service terminals.

During the Spring Festival holidays, Chinese cities, such as Lianyungang, Jinan, and Shenzhen, launched nearly 200 digital yuan activities worth more than 180 million yuan ($26.6 million) to promote its usage.

The activities included consumption coupons, subsidies, and other programs in a move by the authorities to encourage the mass adoption of digital yuan, known as e-CNY, during one of the largest holidays in the country.

The total number of digital yuan wallets in the Asian country reached 140 million at the end of 2021, 10 million of which were corporate accounts, with transactions recording about $10 billion.

By the beginning of 2022, the total number had increased, reaching 261 million individual digital yuan wallets, while transactions grew to $13.8 billion.

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