More Chinese civil servants have begun to be paid entirely in digital yuan, joining some of the country’s bank employees as a new phase begins to promote the currency, reports Nikkei Asia. Changshu, a city in Jiangsu province, will switch to digital yuan direct deposits for public sector employees this month. The move follows a similar action taken by a local regional lender earlier this year.
The push comes as the central-bank-backed digital yuan has failed to gain much circulation due to competition from mobile payment services, despite years of trials. The hope is that paying public sector wages in digital yuan will lead to the adoption of the digital yuan in the larger consumer market.
Changshu, home to 1.5 million people and a suburb of the Suzhou metropolitan area, will pay civil servants and employees of state-owned companies in full with the digital yuan.
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