- Chinese e-commerce giant JD.com used the digital yuan to pay some employees.
- The Bank of China looks to expand the scope of the use of digital yuan.
- The PBOC has carried out several trials across major cities in the country.
Chinese e-commerce giant JD.com used the digital yuan to pay some employees. This is in line with the country’s central bank’s plan to expand the scope of the currency’s use. Notably, the People’s Bank of China (PBOC) started work on digital currency/electronic payment (DC/EP) in 2014. People also call it the digital yuan or e-CNY.
However, the digital yuan has not been rolled out nationwide yet, but the PBOC has carried out several trials across major cities in China. In fact, these pilot projects are given in the form of lotteries where the digital yuan is handed out to residents of a town to spend at some retailers. JD.com has participated in these trials.
On Sunday, JD.com said it had worked with the PBOC on the digital currency trials in a blog post. Also, the firm said it used the digital money to pay salaries for some of its workers in January. JD added that it used the DC/EP to make payments to other businesses, too.
JD’s work brings out new uses for China’s CBDC. The PBOC Deputy Governor Li Bo said earlier this month that the central bank is looking to extend the scope of trials for the currency. This will also allow foreign visitors and athletes at the Beijing Winter Olympics in 2022 to use the digital yuan.
Notably, China’s digital yuan is not a cryptocurrency like Bitcoin. Instead, only the central bank issues it. China has got the lead with so-called central bank digital currencies as other financial authorities all over the world explore giving out their own.