China Debuted Blockchain-based Digital Yuan Salary Payments

China debuted blockchain-based Digital yuan salary payments in the Xiong’an area which marks the first implemented transaction on the blockchain in the country as we can see more in our latest cryptocurrency news today.

China is progressing with the central bank digital currency tests and debuted blockchain-enabled salary payments in the digital yuan. As per the official website of the Xiong’an New Area, the PboC or the People’s Bank of China successfully completed the first on-chain wage payout in the digital yuan.

Announcing the news on Saturday Xiong’an authorities said that the pilot involved much guidance and support from the Shijiazhuang PboC branch and also from the Bank of china Hebei Xiong’an branch. The National Development and Reform Commission also helped. The new CBDC pilot used a blockchain-based payment platform to distribute salaries to workers on the spring afforestation projects in Xiong’an and the engineers’ subcontractors made payments directly to builders’ digital wallets from the public wallet and recorded data on the blockchain.

According to the announcement, the blockchain-based salary payouts simplified the wage payout. The implementation reportedly marks the first combination of blockchain technology with the digital yuan. Xiong’an was one of the first regions to pilot china’s CBDC and the Xiong’an branch of the Agricultural Bank of China in Hebei produced the first-ever digital yuan designed hardware wallet and the product was developed by the Party Working Committee of the XIong’an New Area and the PboC branch in Shijiazhuang.

As previously reported, In an interview with CNBC, the Bridgewater Associates founder shared his opinion of the issuance of the digital dollar and a central bank digital currency and said that it will certainly have its uses and be viable but according to him, it will not be the most competitive one. The reasoning for this was the expectation of China’s economic growth that is still outpacing the US economy and will even further if the yuan becomes more internationally accepted with a healthier interest rate environment.

As blockchain technology continues to cut a bigger hole in the financial systems worldwide, governments will turn to central bank digital currencies even more. Economic powers like the US and China are the two countries that started experimenting with their own digital currencies but that is not to say that smaller countries already implemented a functioning CBDC into their economies.