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- In the Xiong’an New Area, China implemented the country’s first blockchain-powered digital yuan transactions
- The People’s Bank of China (PBoC) has completed the first on-chain wage payouts in the digital yuan in the country
- In April 2020, Xiong’an was one of the first four regions in China to pilot the CBDC
China’s central bank digital currency (CBDC) tests are progressing, with the debut of blockchain-enabled salary payments in the digital yuan. The People’s Bank of China (PBoC) has completed the nation’s first on-chain wage payouts in the digital yuan, according to the official website of the Xiong’an New Area. The pilot was guided and supported by the Shijiazhuang-based PBoC branch, the Bank of China Hebei Xiong’an branch, and the National Development and Reform Commission, according to Xiong’an officials who announced the news on Saturday.
Reports according to Xiong’an Authorities
The pilot was guided and supported by the Shijiazhuang-based PBoC branch, the Bank of China Hebei Xiong’an branch, and the National Development and Reform Commission, according to Xiong’an officials who announced the news on Saturday. The Blockchain Fund Payment platform will be used to pay wages in the region. According to CoinDesk, the People’s Bank of China (PBOC) Shijiazhuang branch and Xiong’an’s management committee’s reform and development bureau both assisted in guiding and managing the project.
Workers on spring afforestation projects in Xiong’an were paid using a blockchain-based payment platform in the new CBDC pilot. Engineering subcontractors sent payments directly from a public wallet to builders’ digital wallets, and the relevant data was recorded on a blockchain.Blockchain-based salary payouts, according to the announcement, significantly simplified the wage payout process. According to reports, this is the first time blockchain technology has been combined with the digital yuan.
In April 2020, Xiong’an was one of the first four regions in China to pilot the CBDC. The Agricultural Bank of China’s Xiong’an branch in Hebei produced the first digital yuan-designed hardware wallet in February 2021. The product was created by the Xiong’an New Area Party Working Committee and the Shijiazhuang branch of the People’s Bank of China.
China’s recent progress on issuing a CBDC was reported by Nairametrics, and with each passing day, China will be the country to pioneer this innovation and integrate it into its country as an official means of payment. So far, all of the country’s pilot programmes have been a huge success, and we can expect more regions to begin testing the new digital yuan in the near future. Other countries, such as Nigeria and Ghana, have recognised the need for a CBDC and are currently working to implement the projects.
China’s perspective on its currency
China does not want the currency to be seen as a weapon against the US dollar, which remains the country’s primary medium of exchange. In April, Vice Governor Li Bo of the People’s Bank of China said that so far, testing has shown that the digital currency has worked well within the Chinese financial system.
As previously reported, the founder of Bridgewater Associates expressed his views on the issuance of a digital dollar and a central bank digital currency, stating that while they will have their uses and be viable, they will not be the most competitive. The reasoning for this was the expectation of China’s economic growth, which is still outpacing that of the United States and will continue to do so if the yuan gains international acceptance and interest rates improve.
He stated that there is currently no timetable for the regulatory framework for the digital yuan to be expanded, but that it will happen eventually. Visitors to next year’s winter Olympics will be able to use the currency, and the currency will be set up for cross-border payment use.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
