Home
News
- 1 Changshu will pay the salary of its government employees in digital yuan from May ‘23.
- 2 Around 13.61 Billion e-CNY worth $2 Billion are in circulation.
China is advancing in the realm of Central Bank Digital Currency (CBDC). As per financial statistics of 2022 released by the central bank in January 2023, 13.61 Billion e-CNY worth $2 Billion are in circulation as of December 2022. As reported by local media, Changshu’s public sector employees will receive their salaries in CBDC from May 2023.
Changshu Broadens CBDC Horizons
Changshu’s financial authorities released the notice described as “notice on the Implementation of Full Salary Digital Renmibi Issuance,” initiating salaries of public sector employees to be in digital yuan from May 2023. Renminbi is the currency system of the People’s Republic of China introduced in 1948. China’s CBDC rollout has already reached 26 different regions.
Taicang, a city near Changshu, was the first location to offer full wages in digital yuan, e-CNY in July 2022.
Changshu has already been promoting the use of e-CNY in use cases like public transport, medical expenses, groceries, and utilities like water and gas. It falls under the jurisdiction of China’s Suzhou, Jiangsu province. Interestingly, the city of Suzhou was the testing ground for the pilot project of digital yuan in 2020. It was accompanied by Shenzen, Xiongan, and Chengdu.
In December 2020, Suzhou released around 20 Million e-CNY worth $30 Million via a lottery system (airdrop). 10,000 residents received red packets via a mobile app containing 200 e-CNY each, which can be used to shop on JD.com.
This development in China correlates with Hong Kong’s increasing strength in the region. The Fragrant Harbor is regarded as a crypto-friendly city offering safe haven for crypto companies. Recent hostility in the U.S. against crypto has caused many entities to think of going offshore and Hong Kong could become a target destination.
Issued by PBC, e-CNY is also known as Digital Currency Electronic Payment (DCEP), better known as digital RMB.
CBDC Scenario Worldwide
Recent data suggests that around 11 countries including the Bahamas have launched CBDC, and more than 100 countries are working on its pilot project, researching and developing the technology to fit their requirements. Central Bank Digital Currencies closely resemble stablecoins as they are pegged by the country’s fiat currency, and controlled by the government or central bank.
Fed is working on its plans to release a CBDC, FedNow. However, it has been slammed by many already. It is heavily criticized for being a surveillance coin and could be used for various bad purposes. Currency expiration, where the value could become null anytime, a complete watch can be kept of holder’s finances, etc.
Ron DeSantis, Florida Governor, and Democrat Presidential candidate Robert F. Kennedy Jr. have openly criticized the proposed CBDC, saying it could be a prop to abuse and could harm the financial privacy rights of U.S. citizens.
CBDCs were initially thought of as the digital version of the nation’s fiat currency, made using blockchain technology. Many nations are still exploring its possibilities.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
