A major step has been taken by one of the biggest e-commerce platforms in China. JD.com to pay its employees in digital yuan.
No nation can push a scheme or idea to its general public unless the big local conglomerates don’t take part in it.
Last year, China rolled out a digital version of its paper currency, Yuan, to push its nationals to have more digital footprints of their money and transactions.
Following in the footsteps of Shenzhen, several Chinese cities have started following a similar strategy to boost the use of the Digital Yuan.
Although the residents in these regions will have to manually apply to the Chinese govt. banks in order to receive and pay digital Yuans.
What started as a plan just of Chinese Govt, has now evolved into a collective effort by China’s regulators, commercial banks, and technology solution providers, which brings more space and cloud for the usage of this digital Yuan.
The online retailer has become one of the few companies to pay its wages to its workers in Digital Yuan. Although the first-ever such payments were done by the Chinese govt of the eastern city of Suzhou to pay its workers using digital Yuan
JD.com to pay its employees in digital yuan, And not only the JD, but many other tech companies are actively participating in the building of the digital Yuan ecosystem.
This not only gives a boost to the country’s digital economy but also helps the government track the money flows.
The various other tech companies promoting the use of digital Yuan are video streaming app Bilibili, on-demand services provider Meituan and ride-hailing app Didi also started receiving digital Yuan.
The design, R&D, and operational part of the Digital Yuan has to be taken by the Gaming and social networking Giant Tencent to become one of the “digital Yuan Operators”
Jack Ma’s Ant group has also joined hands with the government to develop the appropriate infrastructure to move the money.
Huawei is also taking part in this initiative and is developing a system to pay using the digital Yuan even when the user is offline.