China is pushing ahead with its ambitious project of creating its own digital currency, known as the digital yuan or DCEP, by urging its use for salary payments in Changshu.
Digital Yuan Adoption Gains Momentum as China Promotes Wage Payments in Changshu
China is pushing ahead with its ambitious project of creating its own digital currency, known as the digital yuan or DCEP, by urging its use for salary payments in Changshu. The city’s bureau of human resources and social security has collaborated with major banks and companies to make the switch to digital currency payments, advancing China’s plan to create its own central bank digital currency (CBDC).
The bureau asserts that the digital currency payroll system offers various advantages, such as convenience, security, and efficiency. It also claims that the system will help lower the costs and risks involved in cash management and enhance the transparency and accuracy of wage payments. The bureau intends to broaden the scope and scale of the digital currency payroll system in the future, and to persuade more employers and employees to join the program.
The digital currency payroll system is part of China’s wider efforts to develop and deploy its CBDC, which has been under way since 2014. The Chinese central bank has carried out several trials and tests of the digital currency in different regions and situations, such as retail payments, cross-border transactions, and e-commerce platforms. The digital currency is expected to boost China’s monetary sovereignty, financial inclusion, and international influence. However, it also raises some issues about privacy, surveillance, and competition.
