Jinan, the capital of Shandong province in eastern China, has begun to encourage the adoption of the central bank digital currency (CBDC) program by introducing the acceptance of digital yuan payments on all of its bus routes.
In its pilot phase, the city tested the introduction of CBDC payments on two bus lines, namely B52 and BRT5. After this trial period, the city has announced that it has already implemented the new payment method throughout its bus network.
Local media outlet Shunwang-Jinan Daily recently reported that the city of Jinan has updated all of its card readers and bus routing software to allow passengers to pay using the county CBDC.
The city is also incentivizing the use of the digital yuan by giving fare discounts to passengers who opt for the CBDC payment method. According to the announcement, each person could get up to two discounted trips per day and a maximum of six discounted trips in a month if they choose to pay with the digital yuan.
The move is part of a broader push to promote the adoption of the digital yuan in various places in China. On April 23, the Chinese city of Changshu announced that will begin to pay the salaries of civil servants with the digital yuan. The announcement noted that all levels of personnel in the public service, public institutions and state units would be paid in the country's CBDC starting in May.
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In addition to bus travel and civil servant salaries, the country has also implemented its CBDC for its Belt and Road initiative and cross-border trade. A plan to promote CBDC in cross-border trade was launched on April 24. issued in the Chinese city of Xuzhou. The city serves as a departure point for trains carrying goods to Europe.
Meanwhile, French bank BNP Paribas has also recently partnered with the Bank of China (BOC) to promote the use of the digital yuan. On May 5, local media outlet South China Morning Post reported that the partnership would allow BNP Paribas' corporate clients to connect to the BOC system. allow the use of the digital yuan for transactions in real time.
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