As China continues to pursue the integration of its central bank digital currency (CBDC) into its financial system, the Jiangsu province has launched new digital yuan apps, marking another step forward in CBDC adoption.
When it comes to integrating its central bank digital currency (CBDC) into its financial system, China continues to set the bar high. Several regions have declared that they are testing out fresh use cases and looking into how to give Chinese citizens access to the digital yuan.
Moreover, according to a South China Morning Post story, the Jiangsu province’s numerous cities have deployed a number of new digital yuan apps.
Digital yuan in cross-border
A strategy to encourage the use of the digital yuan in cross-border trade has been released by the city of Xuzhou, which serves as the departure location for numerous freight trains leaving China for Europe. There are 18 frequent cross-border rail connections from the city to 21 countries in Asia and Europe.
The Xuzhou city administration will use the e-CNY to “better support the Belt and Road Initiative” by paying for train cargo services and storage. The concept is to use the e-CNY for city taxes and utilities.
Changshu, a 1.5 million-person metropolis in Jiangsu province, will start paying public sector workers in digital_yuan in May. This change may affect teachers, medical staff, technicians, medical journalists, and state-run company employees.
In October 2022, Changshu, one of the first cities to test the digital_yuan, initiated a state employee subsidy program. Taicang was the first to pay public institution employees with it in June 2022.
Over the past year, digital_yuan use has increased due to various programs to promote it. Shenzhen, which gave out more than 570 million yuan ($82.58 million) in consumer subsidies last year, will have 28 million digital yuan wallets by 2022.
At the end of 2022, the People’s Bank of China reported 13.61 billion digital_yuan ($2 billion), or 0.13% of the 10.5 trillion in circulation.
During the Lunar New Year and Spring Festival, China staged around 200 digitalyuan-related activities and donated 180 million ($26.6 million) of the digital fiat to citizens through subsidies, consumption coupons, and other initiatives.
Finally Hong Kong, Thailand, the United Arab Emirates, India, and Russia are just a few of the nations and jurisdictions with which China has discussed using the digital yuan for cross-border payments.