China Makes Major Push in Its Ambitious Digital Yuan Project

Public sector workers in an eastern Chinese city are set to be paid fully in digital yuan, as the country makes a significant push to popularize the currency. From a report: Changshu, located in the province of Jiangsu, will start the new payment process in May, according to an official document widely posted on government websites. This is the biggest rollout of the currency, also known as the e-CNY, in China so far, according to state media. Government employees as well as staff at state-owned companies and public institutions such as schools, hospitals, libraries, research institutes and media organizations in the city will be affected. Changshu, a city of 1.7 million residents, was already experimenting with the digital yuan, a form of money that exists only online and is managed and backed by China's central bank. Like cryptocurrency, the digital yuan incorporates some elements of blockchain technology: Every transaction is recorded and traceable in a digital ledger. Since last October, Changshu has been paying the transit subsidies for some government employees in digital yuan. China is already on the verge of becoming a cashless society, but the vast majority of electronic transactions happen on privately owned apps (Alipay and WeChat Pay), outside of the immediate purview of the state.

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