A recent announcement by authorities in the Chinese city of Changshu declared that all civil servants within the city’s jurisdiction would have their full salaries paid in digital RMB, or digital Yuan, starting May 2023.
Notice issued by Changshu authorities
According to the notice issued by the Changshu Local Financial Supervision Bureau and the Changshu Municipal Bureau of Finance, civil servants such as public service personnel, public institution personnel, and personnel of state-owned units at all levels within the city will be paid using digital RMB.
A local hospital employee confirmed that the staff would start receiving digital yuan payments next month. Additionally, reporters learned that employees could choose digital yuan settlements through self-service terminals.
On February 6, several Chinese city governments distributed over 180 million yuan ($26.5 million) in central bank digital currency (CBDC) during the Lunar New Year period in an effort to increase adoption.
Digital RMB pilot program in Jiangsu province
Changshu, which is part of Jiangsu Province, launched a pilot program for digital RMB in the first quarter of 2023. A local report stated that the goal is to create an efficient and convenient digital RMB operation and management system by 2025.
Despite the Chinese government’s efforts to promote CBDC adoption, Hong Kong residents have slowly embraced it. In the first four days following the digital yuan hard wallet’s launch, only 625 Hongkongers signed up, even though a 20% discount on purchases from 1,400 local vendors was offered to CBDC owners, subsidized by the government.