Jinan, the capital of the Chinese province of Shandong, has recently included the digital yuan as a means of payment for its public transportation system. According to local sources, digital yuan payments were implemented on July 1 in all city buses after being tested in just two bus lines.
Jinan Includes Digital Yuan Payments In Public Transportation System
The city of Jinan, the capital of the province of Shandong in China, has recently announced the implementation of digital yuan payments in its public transportation system. According to local sources, the Jinan Public Transportation Group, a company that manages the bus system in the city, included the digital yuan as a payment means for bus fares on July 1.
Now, almost 7 million citizens of Jinan will be able to use their digital yuan wallets provided by the People’s Bank of China (PBOC) to pay for bus rides in a push to accelerate the digital transformation of the city’s public transportation system. Before, the company had carried out a limited pilot program, only implementing these payments in two bus lines.
Furthermore, to promote digital yuan payments, the city has partnered with Jinan’s PBOC branch to bring discounts as part of the second phase of the “Digital Spring City Low-Carbon Travel” program, which will be open until September 30.
In August, digital yuan payments were implemented by Ningbo Rail Transit to pay for subway tickets in the city of Ningbo.
Digital Yuan Promotion
While experts had reported that the digital yuan’s usage had not picked up due to the existence of private, widely accepted digital wallets like Wechat and Alipay, the PBOC has focused on improving the compatibility and integration of the Chinese central bank digital currency (CBDC) with these alternatives.
In March, Wechat announced the integration of the digital yuan in its payment services, paving the way for more than 1.2 billion users to pay using its system. Alipay, owned by the Alibaba group, also integrated this kind of CBDC payment in December.
Furthermore, the PBOC has also been integrating the digital yuan as a form of payment where state institutions are involved. In Changshu, the city’s employees receive their salaries in digital currency.
In June, one of Asia’s largest counterparty clearing institutions, the Shanghai Clearing House, included support for digital yuan for payments and settlements of commodities.
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