Chinese Companies Paying Workers in Digital Yuan
Chinese companies are embracing the use of the digital yuan to pay their employees, as Beijing aims to promote the adoption of its central bank digital currency (CBDC). One recent example is a state-run bureau overseeing finances at the Zhongkai High-tech Industrial Development Zone in Huizhou, Guangdong Province. Established in 1993 as part of a broader development project, the zone has announced that all public officials and employees of state-owned enterprises will be paid in digital yuan starting from May 2023.
In recent weeks, the People’s Bank of China (PBoC) has been emphasizing the cross-border potential of its digital currency. A Chinese academic even suggested that digital fiats like the e-CNY could assist China and non-Western allied nations in breaking away from US dollar dominance. The academic proposed that digital currency bridge projects could enable bilateral or multilateral cross-border transactions.
Hot Take: Digital Yuan Gaining Traction in Chinese Workforce
Chinese companies are increasingly adopting the use of the digital yuan to compensate their employees. In an effort to promote the country’s central bank digital currency (CBDC), the Chinese government has announced that all public officials and state-owned enterprise workers will receive their salaries in digital yuan starting from May 2023. This move comes as the People’s Bank of China (PBoC) highlights the potential for cross-border transactions using its CBDC. There is also growing interest in using digital fiats like the e-CNY to reduce dependence on the US dollar. Overall, this trend showcases China’s commitment to advancing its digital currency agenda.
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