- July 5, 2023
- Posted by: [email protected]
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Jinan, the capital of China’s Shandong Province, is taking significant steps towards the adoption of the country’s central bank digital currency (CBDC). The city has recently introduced digital yuan payments across its entire bus network, signaling its commitment to promoting the use of CBDCs.
Initially, Jinan conducted a pilot program on two bus lines to test the feasibility of CBDC payments. Encouraged by the successful trial, the city has now fully implemented the new payment method across all its bus routes. In order to facilitate these digital transactions, Jinan has upgraded its card readers and bus route software to support payments using the digital yuan.
To incentivize the use of CBDCs, Jinan is offering fare discounts to passengers who opt for this payment method. According to local media outlet Shunwang-Jinan Daily, individuals can receive up to two discounted rides per day and a maximum of six discounted rides per month when paying with the digital yuan.
This move aligns with the broader efforts in China to promote the adoption of the digital yuan. In April, the city of Changshu announced that it would start paying civil servant salaries using the CBDC, extending the use of digital yuan beyond transportation. The plan covered personnel at all levels of public service, public institutions, and state-owned units, with the transition taking effect in May.
Moreover, China has been actively integrating CBDCs into its Belt and Road initiative and cross-border trade. A plan to promote the digital yuan in cross-border trade was issued in Xuzhou, a Chinese city that serves as a departure point for trains transporting goods to Europe.
In a related development, BNP Paribas, a prominent French bank, recently partnered with the Bank of China (BOC) to promote the use of the digital yuan. The collaboration enables BNP Paribas’ corporate clients to connect with BOC’s system, facilitating real-time transactions using the digital yuan.
By accepting CBDC payments for bus rides, Jinan joins the growing list of cities and institutions embracing digital currencies in China. As the country continues to explore the potential of CBDCs, these initiatives contribute to the advancement of a cashless society and the digital transformation of the Chinese economy.
