China is making progress in its tests for the central bank’s digital currency (CBDC) and introducing blockchain-enabled salary payments in the digital yuan for the first time.
According to the official Xiong’an New Area website, People’s Bank of China (PBoC) has successfully completed the first nationwide wage payments in digital yuan.
Announcing the news on Saturday, Xiong’an authorities said the pilot included guidance and support from the Shijiazhuang-based PBoC office, Bank of China Hebei Xiong’an and the National Development and Reform Commission.
The new CBDC pilot used a blockchain-based payment platform to distribute salaries to workers on spring reforestation projects in Xiong’an. Engineering subcontractors made payments directly from a public wallet to the builders’ digital wallets and recorded the relevant data in a blockchain.
According to the announcement, blockchain-based salary payments made the salary payment process much easier. The implementation reportedly marks the first combination of blockchain technology with the digital yuan.
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Xiong’an was one of the first four regions to pilot China’s CBDC in April 2020. In February, the Xiong’an branch of the Agricultural Bank of China in Hebei produced the first digital hardware wallet in the Yuan design. The product was developed by the Party Working Committee of Xiong’an New Area and PBoC’s Shijiazhuang office.