Jinan, the capital of eastern China’s Shandong Province, has started encouraging the adoption of the country’s central bank digital currency by introducing digital yuan payments across all its bus routes.
In its pilot phase, the city tested the introduction of CBDC payments on two bus lines. Following the trial period, the city has announced that it has implemented the new payment method for its entire bus network.
It is reported that the city of Jinan has updated all its card readers and bus route software to allow passengers to pay using the county’s CBDC.
The city is also incentivizing the use of the digital yuan by giving fare discounts to passengers who opt for the CBDC payment method. According to the announcement, each person could get up to two discounted rides per day and a maximum of six discounted rides in a month if they choose to pay with the digital yuan.
The move is part of a broader push to promote the adoption of the digital yuan in China. On April 23, the Chinese city of Changshu announced it would begin paying civil servant salaries with the digital yuan. The announcement noted that all levels of personnel in public service, public institutions and state-owned units would be paid in the country’s CBDC from May.
Apart from bus rides and civil servant salaries, the country has also implemented its CBDC for its Belt and Road initiative and cross-border trades.
