The Chinese city of Jinan, located in Shandong Province, is spearheading the adoption of central bank digital currency (CBDC) by integrating CBDC payments throughout its extensive bus network.
This move follows a successful pilot phase on two bus lines, leading to the city-wide implementation of the new payment method.
Implementation of CBDC Payments on Jinan’s Bus Network
Jinan Daily, a local media outlet, recently reported that Jinan has upgraded all its card readers and bus route software to facilitate the usage of the county’s CBDC for bus fare payments. The city has embraced this technology to provide greater convenience to passengers and encourage the adoption of digital yuan.
To further incentivize the utilization of the digital yuan, Jinan is offering fare discounts to passengers who opt for CBDC payments. Additionally, passengers can enjoy two discounted rides per day and a maximum of six discounted rides in a month. This is if they choose to pay with the digital yuan.
Broader Adoption of Digital Yuan in China
Notably, Jinan’s initiative is part of a larger nationwide effort to promote the digital yuan across various sectors. On April 23, the city of Changshu announced its intention to pay civil servant salaries using the CBDC. Further, starting from May, public service personnel, individuals working in public institutions, and employees of state-owned units will receive their salaries in the digital yuan.
The CBDC has also found utility in China’s Belt and Road initiative and cross-border trade. On April 24, the city of Xuzhou issued a plan to boost the use of CBDC in cross-border trade, particularly for goods transported by trains to Europe. This demonstrates China’s commitment to utilizing digital currencies for international transactions.
Partnership with BNP Paribas
In a noteworthy collaboration, French bank BNP Paribas has recently joined forces with the Bank of China (BOC). This is to further promote the adoption of the digital yuan. According to the South China Morning Post, this partnership enables BNP Paribas’ corporate clients to connect with BOC’s system. This will in turn, facilitate real-time transactions using the digital yuan.