CBDC Payments Introduced on Buses in China
Jinan, a pivotal city situated in the Shandong Province of China, is propelling the adoption of China's trailblazing central bank digital currency (CBDC), known as the digital yuan. An expansion has taken place where the entire bus network of Jinan is now fully equipped to accept digital yuan as payment for bus fares.
Shunwang-Jinan Daily, a local media conduit, broadcasted that Jinan’s bus fleet has undergone an upgrade with advanced card readers and software to facilitate seamless transactions via digital yuan.
Additionally, a tantalizing incentive has been orchestrated by the city to persuade passengers to pivot to digital yuan payments. This comprises discounted fares, where an individual can attain a maximum of six subsidized rides each month.
The city of Jinan is a cog in the larger machinery of China’s strategy to incorporate its CBDC into the very fabric of its economy. Another cog is Changshu, which has made strides by initiating salary payments to civil servants in the form of digital yuan. This encompasses personnel across different verticals such as public service, public institutions, and state-owned enterprises.
The digital yuan is also making waves in cross-border trade. Xuzhou, a key city in China's logistics network, serving as the launch pad for cargo trains heading to Europe, has unleashed a blueprint for the integration of the digital yuan into cross-border commerce.
Simultaneously, there is a fusion occurring on the global front where international financial institutions are intertwining with China’s CBDC project. A partnership has been forged between BNP Paribas, a titan in the banking sector based in France, and the Bank of China. This alliance is crafted to offer BNP Paribas' corporate clientele the capacity to execute real-time transactions using the digital yuan via Bank of China’s system.
These developments reflect China's steadfast commitment to engraving the digital yuan into an array of economic activities and solidifying its position as a pioneer in the evolution of CBDCs.
