In a move that marks the wide-ranging utility of cryptocurrencies in daily life, the Chinese city Jinan recently rolled out a new scheme whereby its citizens would be able to pay for bus rides with the country’s central bank digital currency (CBDC).
Jinan will implement the scheme with digital Yuan payments on all its bus routes. Jinan is the capital of the Shandong Province, which is located in eastern China.
The city authorities initially started by introducing digital yuan payments on two routes. After the success of the pilot phase, they announced that CBDC-based payments would now be offered on all routes.
According to Shunwang-Jinan Daily, a local media outlet, the city’s authorities have updated bus route software and card readers to allow the passengers to make the CBDC payments.
The implementation of the new scheme will enable the application of new crypto coins and boost their adoption. Rather than just trading them on a coin tracker or exchange, crypto users would now be able to use them for practical purposes in daily life.
What’s more, is that Jinan residents can also enjoy discounts on fares by using the CBDC payment option on bus rides. As per the authorities’ announcement, every passenger can avail of up to two discounted rides each day and a maximum of six rides at reduced fares in a month if they decided to pay with the digital yuan.
The decision is seen as part of a broader strategy to encourage the adoption of China’s CBDC. Earlier in April this year, the Chinese city Changshu announced that it would be using the digital yuan for paying the salaries of civil servants. As per the authorities, the new rule would be implemented at all levels of public service, public institutions, and government-owned enterprises from May.
Not just the salaries of civil servants and bus rides, China has also introduced a mechanism that paves the way for its CBDC usage in cross-border trades and the Belt and Road Initiative. On April 24, Chain rolled out a plan to encourage the use of the digital yuan in Xuzhou. Trains carrying goods to Europe depart from Xuzhou.
Meanwhile, BNP Paribas recently announced that it will be partnering with the Bank of China to encourage the use of digital yuan. In a May 5 report, The South China Morning Post stated that the partnership would allow the French Bank’s corporate clients to be able to use the digital yuan in real-time by connecting to the Bank of China’s system.
Jinan’s new scheme for its bus routes seems to be in tandem with the growing global adoption of cryptocurrencies. The espousal of blockchain-based assets by governments also reduces the scope of fraudsters duping people with misleading promises like how to make $100 a day with cryptocurrency. Such schemes can also be instrumental in making crypto adoption easier. For instance, people don’t have to worry about factors like what is the best time of day to buy a cryptocurrency and can rather explore more practical ways of using crypto assets.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
