The People’s Bank of China (PBOC) successfully completed the first digital yuan salary payments in Xiong’an District, Hebei Province, in collaboration with local banks.
The Xiong’an authorities said that the payment of salaries in state digital currency was carried out with the participation of the NBK branch in Shijiazhuang City, Hebei Province, as well as the Bank of China branch in Xiong’an and the National Development and Reform Commission of China. Using a special blockchain-based platform, payments were distributed among the workers involved in the spring planting of the forest.
Subcontractors transferred digital yuan directly to the addresses of workers, all information was recorded on the blockchain. Local authorities said the technology made the payroll process easier, making it much faster and more transparent. In addition, this initiative became the first pilot project in which both blockchain and digital yuan were tested.
Xiong’an is one of the first regions to experiment with government digital currency. For example, in February, the local branch of the Agricultural Bank of China unveiled a hardware wallet for the NBK digital currency, which supports payments without the use of the Internet and mobile phones. The intention to release a hardware wallet for the digital yuan was also announced by the Chinese company Chutian Dragon, which will introduce Norwegian fingerprint identification technology.
This is not the first test of the digital yuan. Earlier, the Chinese authorities distributed a certain amount of state stablecoins for free to residents of different provinces of China, which could be used to pay in stores. In addition, the NBK will conduct another “large-scale” testing of the digital yuan during the Winter Olympic Games in 2022.
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