People living or visiting Jinan can now pay for their bus rides using digital yuan.
The Chinese city of Jinan, in Shandong Province, is fostering the adoption of China's central bank digital currency (CBDC), the digital yuan, by implementing its usage for all city bus commutes.
Initially, the city experimented with digital yuan payments on a couple of its bus routes during a pilot phase. Following successful trials, Jinan announced the citywide roll-out of the new payment method across its entire bus network.
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According to Shunwang-Jinan Daily, the city's efforts didn't stop at only allowing CBDC payments. The city also updated all card readers and bus route software, equipping them to accept the digital yuan from passengers.
In a bid to further stimulate the use of the digital yuan, Jinan is offering fare discounts for passengers who choose the CBDC as their payment option. According to the announcement, passengers can take up to two discounted rides per day and a maximum of six discounted rides monthly when paying with the digital yuan.
Jinan's initiative is part of a larger Chinese strategy to foster the acceptance of the digital yuan nationwide. For example, another Chinese city, Changshu, declared on April 23rd that it would begin paying civil servant salaries in digital yuan. The new policy includes all levels of personnel across public service, public institutions, and state-owned units.
Global financial institutions are also recognizing the growing influence of China's CBDC. For instance, the British multinational banking institution Standard Chartered and PwC China have joined forces to develop a white paper exploring the potential of CBDC in China's Greater Bay Area (GBA).
The broad-spectrum promotion and implementation of the digital yuan from local bus fares to cross-border trades demonstrate China's ambitious plan for its CBDC. With growing global interest and participation, the digital yuan is steadily gaining momentum in China's march towards a digital economy.
