Chinese digital yuan’s real-world applications to be tested soon

• The digital yuan is reportedly being tested as part of a transport subsidies scheme for the local government and enterprise workers in China.
• Enterprises in the Suzhou district must pay 50% of local workers’ transport subsidies in the new digital currency soon.

China’s central bank digital currency (CBDC) is reportedly being tested as part of a transport subsidies scheme for the local government and enterprise workers. Enterprises located in the Xiangcheng District of Suzhou will reportedly be paying 50% of local workers’ transport subsidies in the new upcoming digital currency.

Enterprises and other management committees in the district should first sign a digital currency distribution agreement with a relevant wage distribution bank. Later, they must install a digital wallet for all their workforce members. There are four banks involved in the scheme. These include Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China and the China Construction Bank.

As per an official letter by ChinSci-Tech reporters, enterprises must choose one of the above-listed banks to sign the issuance agreement and to install the digital wallets for their staff by the end of May. According to Cointelegraph, a recent report noted that AliPay has contributed to the research and development of the currency’s hardware, distribution and payment channel technology.