Chinese City of Jinan Introduces Digital Yuan (E-CNY) Payment on Bus Routes as Pilot Phase
In a move aimed at promoting the adoption of the central bank digital currency (CBDC), the Chinese city of Jinan has announced the introduction of digital yuan payment on select bus routes. This pilot phase will serve as a testing ground before expanding the initiative to cover all bus routes in the city.
According to the local media outlet Shunwangjinan Daily, the Jinan city government has updated the bus route software and equipped all card readers to facilitate payments in digital yuan. This development allows passengers the convenience of utilizing the CBDC as a payment method during their daily commutes.
To encourage the widespread use of the digital yuan, the city government plans to offer rate discounts to passengers who opt for digital yuan payments. Passengers paying with digital yuan will be eligible to receive discounts up to two times a day, with a maximum of six times per month per person.
This move is part of China’s broader efforts to explore and implement various pilot projects to popularize the use of the digital yuan. Earlier this year, the city of Suzhou in Jiangsu Province announced its intention to leverage the digital yuan for cross-border trade, particularly with European counterparts.
Additionally, in May, Changshu City began paying salaries to public officials, employees of public institutions, and state-owned enterprises in digital yuan. This initiative showcased the practical applications of the CBDC in day-to-day financial transactions.
China’s push towards the adoption of the digital yuan has also gained international attention. In a significant development, France’s BNP Paribas Bank recently signed a partnership agreement with the People’s Bank of China to promote the use of the digital yuan. As part of this collaboration, BNP Paribas’ corporate clients will be granted access to the People’s Bank of China system, enabling real-time transactions using the digital yuan.
The introduction of digital yuan payment on bus routes in Jinan represents another step forward in China’s ongoing efforts to establish the CBDC as a mainstream payment method. By integrating the digital yuan into daily transactions, the Chinese government aims to enhance financial inclusivity, efficiency, and security. As more pilot projects and partnerships emerge, it is evident that China is at the forefront of exploring the potential of central bank digital currencies.
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