Chinese city public servants to receive digital RMB salaries from May

A notice issued by the authorities governing the Chinese city of Changshu stated that all civil servants in its jurisdiction will receive their full salaries in digital RMB or digital yuan from May 2023.

According to the warning issued by local Chinese authorities, the Changshu Local Financial Supervision Bureau and the Changshu Municipal Finance Bureau, public officials including public service personnel, public institution personnel, and personnel of state units in all city ​​levels, will be compensated with digital payments in RMB.

A staff member at a local hospital site reportedly confirmed that the workforce would be paid in digital yuan starting next month. In addition, reporters were told that employees can opt for digital yuan settlements through self-service terminals.

On February 6, various Chinese city governments previously gave away more than 180 million yuan (26.5 million U.S. dollars) of the central bank digital currency (CBDC) during the Lunar New Year period to drive adoption.

Jiangsu province, where the city of Changshu resides, previously started a pilot program for digital RMB in the first quarter of 2023. The goal, according to a local reportis to establish an efficient and convenient digital RMB management and operation system by 2025.

Related: China central bank includes digital yuan in report on currency circulation

The Chinese government's push for CBDC adoption has not gone down well with Honk Kong residents. In the first four days of the yuan digital hard wallet launch, only 625 Hong Kongers had signed up.

The lack of adoption was evident despite a 20% discount on purchases from 1,400 local vendors, subsidized by the government for CBDC owners.

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