Xiong’an New Area, a state-level new area in Hebei, China, sees use of chain payments of digital yuan, according to a circular issued by the Xiong’an government. The announcement details that Xiong’an subcontractors and builders are being paid by the central bank’s digital currency (CBDC) through the People’s Bank of China and the new region’s development commission.
Xiong’an New Area Pay Contractors in Digital Yuan
It appears that workers in the state-level new area in Hebei, China also known as Xiong’an New Area, are being paid by Chinese CBDC. Xiong’an government officials issued a circular describing the test objectives of the project. According to the announcement, the Shijiazhuang office of the People’s Bank of China (PBOC) and the development commission of the new area are engaged in the salary pilot system.
The statement originating from the Xiong’an New Area, which explains its paying builders with chain digital yuan payments, follows the recent statements by the director general of the Digital Money Research Institute about PBOC.
The general manager Mu Changchun explained on Friday, at the Lujiazui Forum in Shanghai that the digital yuan will be “inclusive”. Mu’s statements follow the recent report, which shows that CBDC is not widely accepted in China.
The director general of the Digital Value Research Institute on PBOC stressed on Friday that the digital yuan will be able to take advantage of all kinds of paper money programs as well as physical payment vehicles. Mu noted that the different wallets will satisfy the unique types of Chinese residents using the CBDC. China’s central bank has also launched even more “red envelopes” digital yuan lotteries in Beijing and Shanghai. Hong Kong will also be able to link with the digital yuan, according to a recent report.
Xiong’an New Area has always been considered a “millennium strategy” since it was introduced by the Standing Committee of the Politburo of the Communist Party of China in 2014. The Xiong’an government circular explains that builders in the region receive a salary. for the Blockchain Fund Payment Platform. The new area has many workers building at jobs such as the Beijing-Xiong’an intercity railway and Xiong’an railway station.
Large amounts of citywide construction are taking place in Xiong’an, as the new region has seen a flood of Beijing investors buying real estate in the region in recent years. This caused a housing bubble in the new Xiong’an region and local officials imposed a temporary ban on new real estate sales. The digital yuan trial aims to pay salaries to the development sector by “comprehensively improving service capabilities and optimizing service experience,” the circular notes.
The first set of digital yuan payments was directed to the contractors working on spring forest projects in Xiong’an. Hebei Bank is also cooperating with the digital yuan trial members in Xiong’an. A rough translation of the circular further describes the digital yuan takeover of a subcontractor’s public wallet to the builder’s private digital wallet in batches. The protocol “greatly simplifies the average payment process, and significantly improves the efficiency of salary payment.”
What do you think of the Xiong’an New Area piloting the digital yuan through contract payments? Let us know what you think about this topic in the comments section below.
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