The move to pay salaries in digital yuan comes after Changshu launched a CBDC pilot program in Q1 2023.
The authorities in Changshu, a Chinese city known as the "Paradise of the Lower Yangtze," announced that from May 2023, all civil servants would receive their salaries in digital yuan.
Based on the local news report, the directive covers all employees in public service, public institutions, and state-owned units.
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It is worth noting that a staff member at a local hospital confirmed the reports claiming that starting in May, all employees would start receiving digital yuan payments. Additionally, workers can allegedly choose digital yuan settlements through self-service terminals.
Chinese city governments distributed over 180 million yuan ($26.5 million) worth of the central bank digital currency (CBDC) during the Lunar New Year celebrations on February 6th to promote its adoption.
Changshu, situated in Jiangsu province, had previously launched a digital yuan pilot program in Q1 2023. As per a local report, by 2025, the city aims to develop an efficient, easy-to-use operation and management system.
Despite the Chinese government's push for CBDC adoption, Hong Kong residents have shown little enthusiasm. In the first four days following the digital yuan wallet's hard launch, only 625 residents registered.
It can be assumed that the lack of interest from Hong Kong's residents can be linked to the city working towards its own crypto, CBDC, and Web3 ecosystem. At the end of February, Hong Kong’s Securities and Futures Commission sought public comment on new rules for virtual asset trading platforms. Since then, several crypto firms, such as Huobi, Gate Group, and Independent Reserve, have set their eyes on Hong Kong expansion.
