China to Finalize Trial Of First Blockchain-powered Digital Yuan Wage Payout In Xiong’an

By Emily Rys | June 16, 2021

China has reportedly taken additional strides with its central bank digital currency (CBDC) trials, carrying out the debut of blockchain-powered salary payments in the digital yuan.

Particularly, the People’s Bank of China (PBoC) has reportedly managed to finalize the first on-chain batch of salary, enabled by the digital yuan, of the country. 

The governmental representative of Xiong’an has reportedly claimed that the pilot will come with instruction and support from the Shijiazhuang-headquartered PBoC division, the Bank of China office in Hebei Xiong’an, together with the National Development and Reform Commission.

The new CBDC trial will reportedly employ a blockchain-powered payment platform for the distribution of salaries to workers on spring afforestation initiatives, working in Xiong’an. 

The payment will be directly transferred by engineering subcontractors to builders’ digital wallets from a public wallet, with the associated data updated onto a blockchain. 

The new method of blockchain-powered salary payouts has reportedly offered major simplification to the wage payout process. The implementation will be the first time the digital yuan is combined with blockchain for a real-life scenario. 

Xiong’an was reportedly included in the earliest four territories to carry out trial phases for China’s CBDC in April last year. In February, the Agricultural Bank of China in Hebei in Xiong’an built the first digital yuan-designed hardware wallet. 

The Party Working Committee of the Xiong’an New Area and the PBoC’s branch in Shijiazhuang reportedly took care of the development process for the offering.

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