Jinan, the capital city of Shandong Province in eastern China, has taken a significant step towards promoting the adoption of China’s central bank digital currency (CBDC). The city has introduced digital yuan payments across its entire bus network, encouraging residents to embrace this new payment method.
During the pilot phase, Jinan tested CBDC payments on two bus lines, B52 and BRT5. Following a successful trial period, the city has now expanded the implementation to cover all bus routes. To facilitate this change, Jinan has updated its card readers and bus route software, allowing passengers to pay fares using the digital yuan.
To incentivize the use of the digital yuan, the city is offering fare discounts to passengers who choose the CBDC payment option. Each individual can enjoy up to two discounted rides per day and a maximum of six discounted rides per month when paying with the digital yuan.
This initiative in Jinan is part of a broader effort by China to promote the widespread adoption of its digital currency. In April, the city of Changshu announced that it would begin paying civil servant salaries using the digital yuan. This move extended to all levels of personnel in public service, public institutions, and state-owned units from May.
Beyond bus rides and civil servant salaries, China has also integrated its CBDC into its Belt and Road initiative and cross-border trades. The city of Xuzhou issued a plan in April to promote the use of the digital yuan in cross-border trade, leveraging its role as a departure point for trains transporting goods to Europe.
Furthermore, French bank BNP Paribas recently partnered with the Bank of China (BOC) to facilitate the adoption of the digital yuan. This collaboration allows BNP Paribas’ corporate clients to connect with BOC’s system, enabling real-time transactions using the digital yuan.
Jinan’s move to accept digital yuan payments for bus rides demonstrates China’s commitment to advancing its CBDC adoption agenda. By integrating the digital currency into everyday transactions, China aims to shape the future of financial technology and digital payments on a national scale.
Overall, this development in Jinan highlights the growing importance of CBDCs and the integration of digital currencies into various sectors of the economy, paving the way for a digitized future of finance.