China’s Xiong’an New Area, some 100 kilometers southwest of Beijing, has started using the central bank digital currency (CBDC), the digital yuan, for wage payments.
- The Xiong’an government released a statement Saturday, describing the digital yuan pilot as the nation’s first “on-chain” payment that has been used for builders’ wages.
- Xiong’an said the Shijiazhuang branch of the People’s Bank of China (PBoC) and the reform and development bureau of Xiong’an’s management committee were involved in guiding and supporting the project.
- The region is using the Blockchain Fund Payment Platform to pay wages in digital yuan to the builders.
- China has been testing pilot digital currency trading platforms in different regions as well as setting up a legal framework for CBDCs with global financial regulators.
- The PBoC has been working on trials of its digital yuan with commercial banks and payment providers.
Source: Coindesk
