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Xiong’an New Area in China has been issued a circular by the government to use digital yuan for payments. As per the directives, the builders and the contractors can get payments in digital yuan.
The pilot project of digital yuan in Hebei, China has been on a roll. Xiong’an Area is a state-level new area in Hebei, China where a circular was issued by the government to use digital Yuan payments. The subcontractors and the builders are being paid in the CBDC through the People’s Bank of China and the new area’s development management committee.
The government officials have published a circular stating the project’s testing goals. The workers in Xiong’an New Area are being paid in China’s CBDC. As per the announcement made, the People’s Bank of China (PBOC) Shijiazhuang office and the new area’s development management committee have agreed to roll out the wage pilot system.
The statement coming from the new area explains that the builders are being paid in the onchain digital Yuan following the recent statement from the director-general of the PBOC’s digital currency research institute.
CBDC not an attraction
According to Mu Changchun, Director-general digital Yuan would be inclusive. He was attending the Lujiazui Forum in Shanghai when his statement came. His statement followed the recent report which revealed that CBDC is not widely accepted by the mob in China.
He stressed the utility of the digital Yuan and said that it will be able to leverage all types of wallet software and physical payment vehicles also. He also suggested that there will be different types of wallets that will satisfy the Chinese residents using the CBDC.
Digital Yuan lotteries, also known as Red Envelope, have also been launched by the Central Bank in Beijing and Shanghai to attract more people to use CBDC. As per the reports, Hong Kong will also be connected to the circuit to take benefits of the digital Yuan.
New developments in Xiong’an new area
Xiong’an New Area is popularly known as the millennium strategy since its inception in 2014. It was introduced by the Politburo Standing Committee of the Communist Party of China. According to the circular by the Xiong’an government, the builders in the region will be paid wages via the Blockchain Fund Payment Platform. There are a number of workers in the new area at the worksites like the Beijing-Xiong’an intercity railway and Xiong’an railway station.
There are many development activities happening in the new area and most of the construction is going on in the region. There are a lot of Beijing investors coming to the region and investing in real estate in recent years. This has created tension in the region and the local authorities put a ban on the sale of new real estate. The pilot of the digital yuan trial is aimed at paying wages to the development sector by improving service capabilities and optimizing service experience.
The first set of workers who have received the payment in digital yuan has been directed to the contractors who are working on spring afforestation projects. The Bank of Hebei has joined hands with the digital yuan trail members in Xiong’an.
According to the circular, the transaction of the digital yuan will be done in a phased manner. It will first go into the subcontractor’s public wallet and then move to the builder’s private digital wallet in batches. As per the protocol, the intermediate payment process will be simplified easily and it will also improve the wage payment efficiency significantly.
Digital Yuan
The digital yuan of China could be the money of the future for the people living in the country. The successful first pilot was launched in Suzhou city in Shanghai where 181,000 consumers were given 55 digital yuan for free in the digital wallets. The money was given to spend at the participating outlets in the shopping festival held in May.
To start transacting in digital yuan, one has to download the app which gives them the wallet. The consumers can purchase things from the participating stores and will receive discounts. The Digital yuan is the Chinese version of the normal currency in China. It is deployed on a blockchain. China is also trying to establish cross-border payments via digital yuan in Hong Kong and Shenzhen. China is also trying to make a platform to take the currency internationally to Thailand, the UAE and the Bank of International Settlements.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
