Starting from May, the employees of the government-affiliated organizations and public institutions in Changshu City, China, will receive their salaries in digital yuan. This move by the Chinese government is aimed at promoting the use of digital yuan as a means of payment.
Changshu city has been pushing towards increased adoption of digital yuan since last October, paying transit subsidies to some of its government employees with the digital currency. This initiative to pay salaries in digital yuan is the next step towards a completely cashless society.
The use of digital yuan, according to China, provides several benefits over traditional payment methods, including faster transaction times, increased security, and reduced costs. Changshu city is one of the many cities in China to embrace the use of digital yuan, with Taicang being the first city to fully offer wages in the digital currency.
This latest move by the Chinese government is part of their broader goal of digitizing the economy and promoting digital payment systems. It is expected that more cities in China will follow suit and adopt the use of digital yuan as a means of payment for their employees.
It will be interesting to see the impact of this initiative on the adoption of digital yuan in Changshu city. With the increased adoption of digital yuan, it is possible that China will become the first major economy to launch its own central bank digital currency.