Jinan, the capital city of China’s Shandong Province, has taken a significant step towards the widespread adoption of the country’s central bank digital currency (CBDC).
The city has introduced digital yuan payments on all its bus routes, encouraging residents to embrace this new payment method.
Initially, the city conducted a pilot program on two bus lines to test the feasibility of CBDC payments. Following the successful trial, Jinan has now implemented the digital yuan payment system across its entire bus network.
Local media outlet Shunwang-Jinan Daily reported that the city has upgraded its card readers and bus route software to accommodate the CBDC payments.
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To incentivize the use of the digital yuan, Jinan is offering fare discounts to passengers who opt for this payment method.
According to the announcement, passengers can enjoy up to two discounted rides per day and a maximum of six discounted rides per month when using the digital yuan.
This initiative in Jinan is part of a broader nationwide effort to promote the adoption of the digital yuan in China.
Another city, Changshu, recently announced that it would pay civil servant salaries with the CBDC starting from May. This move extends to personnel at all levels of public service, public institutions, and state-owned units.
In addition to bus rides and civil servant salaries, China has implemented its CBDC for the Belt and Road initiative and cross-border trades.
On April 24, the city of Xuzhou issued a plan to promote the use of the CBDC in cross-border trade. Xuzhou serves as a departure point for trains transporting goods to Europe.
In a related development, BNP Paribas, a French bank, has partnered with the Bank of China (BOC) to encourage the use of the digital yuan.
Through this collaboration, BNP Paribas’ corporate clients will have the opportunity to connect with BOC’s system, facilitating real-time transactions using the digital yuan.
The introduction of digital yuan payments on Jinan’s bus routes represents a significant milestone in the promotion of China’s CBDC.
By integrating the digital currency into everyday transactions and expanding its use across various sectors, China is steadily advancing towards a digital economy.
