Chinese National Digital Currency is Going Live in May; Enterprises Will Pay Salaries via Digital Currency
CBDC: Chinese national digital currency will be implemented through government employees in one city only.
Chinese National Digital Currency
At last, China has decided to launch its digital currency- Digital Currency/ Electronic Payment- in May 2020. However, the digital currency will be implemented through government employees in one city only.
Salary via Digital Currency
The Chinese media news agency China Star Market reported today that the employees working in the ‘’Xiangcheng District of Suzhou’’ will receive their fifty percent of transportation subsidy in the country’s digital currency.
The report reads:
‘’The district-level agencies and enterprises in Xiangcheng District of Suzhou, the salaries of workers through the four state-owned banks of the Workers, Peasants and China Construction will complete the central bank digital currency (DC / EP) in April. Installation of digital wallet. In May, 50% of the transportation subsidy of his salary will be obtained in the form of digital currency.’’
The media agency also mentioned the official document showing that the four banks of China will offer the services. These banks will work with the enterprises and institutions to pay their part of salaries in China’s CBDC, digital currency/ electronic payment. The process of establishing digital wallets will be completed before the end of April per the official statement.
The payment in digital currency will be issued by four state-owned banks including the Agricultural Bank of China, the Bank of China, the China Construction Bank, and the Industrial and Commercial Bank of China.
The issuance of the central bank digital currency (CBDC) was delayed due to the Coronavirus outbreak. After defeating the COVID-19, the central bank again starts working on its plan to implement it throughout the country. However, at the start, they choose to start working in one city to check whether it will be successful or not.
Alipay filed 5 Patents
The Chinese based online payment network Alipay filed up to 5 patents for the CBDC from the period between January 21 and March 17. Alipay is already working with the People’s Bank of China (PBoC) in the issuance of the national digital currency.
Currently, the system work via third party online payment networks such as AliPay and WeChat. Per the plan, in the future, there will be no role of the third party at all.
Matthew Graham, CEO of Sino Global Capital, in a tweet:
‘’Americans still trying to figure out if they should put on a face mask while China pushes out a revolutionary technology.’’
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