More Chinese Firms Paying Workers in Digital Yuan
More Chinese companies are using the digital yuan to pay their workers, as Beijing looks to spur the adoption of its CBDC.
Per the Huizhou Daily, the latest firm to trial paying staff in CBDC is a state-run bureau, a body that overseas finances at the Zhongkai High-tech Industrial Development Zone.
The zone is located in Huizhou, Guangdong Province, and was established in 1993 as part of a wider Guangdong-Hong Kong-Macao Greater Bay Area development project.
The bureau teamed up with the Huizhou Branch of the Industrial and Commercial Bank of China (ICBC) to process the CBDC salary payments.
The media outlet reported that the bureau had become the first company in the city to pay its staff using the digital yuan.
Both regular staff members and cadres (CCP-appointed officials) will be paid in CBDC tokens under the new program.
The Huizhou branch of the central People’s Bank of China (PBoC) stated:
“This is a good application scenario for the [e-CNY] and will act as a demonstration case.”
The PBoC claimed that if local CCP organs and government agencies paid their staff in digital yuan, this would “encourage local enterprises and individuals to open digital CNY wallets.”
This, in turn, will “boost the frequency of digital yuan use” and spur adoption in Huizhou.
And, the bank said, the experience would help familiarize the city’s digital governance officials with the CBDC.
The bank added that the move would also help “expand the application of the digital yuan in the public sector.”
The bureau’s staff were instructed to open digital yuan wallets in order to receive their salaries.
A Huizhou-based ICBC official, meanwhile, said the move further “consolidates government-bank relationships.”
The ICBC vowed to “explore” more applications for
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