Chinese city now accepts CBDC payments for bus rides

[MOProgress]

Jinan, the capital of eastern China’s Shandong Province, has started encouraging the adoption of the country’s central bank digital currency (CBDC) 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.

Local media outlet Shunwang-Jinan Daily recently 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. On April 24, a plan to promote the CBDC in cross-border trade was issued in the Chinese city of Xuzhou. The city serves as a departure point for trains carrying goods to Europe.

Meanwhile, French bank BNP Paribas has also recently partnered with the Bank of China (BOC) to promote the use of the digital yuan. On May 5, local media outlet the South China Morning Post reported that the partnership would allow BNP Paribas’ corporate clients to connect with BOC’s system, enabling the use of the digital yuan for real-time transactions.

NEWS SOURCE

[348Judah]

I hope you understand that CBDC is not cryptocurrency not to talk about having something related to bitcoin, this discussion is what you would have best post the thread on politics and society board or economics board where their could be proper discussions on the subject matter, this is bitcoin discussion board and CBDC is nothing but a digital version of fiat currency owned and controlled by the government.

[kryptqnick]

I think this topic belongs on the Economics section more than here because it's not about Bitcoin.
I'm not surprised that China's encouraging people to use their CBDC because it's a way of performing even more control over citizens than they normally do. These transactions are more traceable, while giving people the illusion that they're using something similar to cryptocurrencies. Fare discounts are probably a good way to promote a CBDC, but I hope people will be careful with using it. Surveillance is already too much in China even without a CBDC.

[Yogee]

What I'm more interested in is the use of their CBDC in cross-border for their international trades. The belt and road initiative connecting various countries in Asia, Africa and Europe seems to be progressing well so I can see how digital yuan could be quickly adapted.

[o48o]

Jinan, the capital of eastern China’s Shandong Province, has started encouraging the adoption of the country’s central bank digital currency (CBDC) 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.

Local media outlet Shunwang-Jinan Daily recently 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. On April 24, a plan to promote the CBDC in cross-border trade was issued in the Chinese city of Xuzhou. The city serves as a departure point for trains carrying goods to Europe.

Meanwhile, French bank BNP Paribas has also recently partnered with the Bank of China (BOC) to promote the use of the digital yuan. On May 5, local media outlet the South China Morning Post reported that the partnership would allow BNP Paribas’ corporate clients to connect with BOC’s system, enabling the use of the digital yuan for real-time transactions.

NEWS SOURCE

This should be placed in somewhere else then altcoins. Connecting CBDCs (especially China's version) with cryptocurrencies is quite misleading. It's more like cautionary tale for /Economics or /Politics & Society

Later they will declare CBDC as mandatory, only way to pay anything, but before that they need to provide education and possibility to use it for all citizens. And that's going to be a massive operation that takes some time.

[yhiaali3]

Yes, they started implementing this nonsense in China.

China is basically a centralized authoritarian country and CBDC will increase the centralization of the government terribly, which will be a huge burden on the citizens because all their transactions will be under the direct control of the government.

[Nwada001]

With China bringing their CBDC to life and making it work, it seems like a great move that other countries might also want to look upon and take such a step in order to make their CBDC work too. Since China is among the five banks that have successfully launched CBDC,
 
It's their discovery; it's their country; and it's also their problem. Implementing a centralized currency and making their own local currency digital is actually a good development for them. The only place where I'm finding an issue with them is trying to impose it on all their civil servants as a means of paying them their salary. That will be a little harsh; they should allow their people to choose what's best for them and what payment option they prefer best. It's something new, and not everyone will have full knowledge of how to use it, how to spend it, and all of that. Since it was just included as a payment option in the transportation industry, they should also do the same with civil servants, allowing them to make their own choices and maybe giving a little convincing bonus in order to lure most people in, just as they did with the discount given to those paying with the CBDC for their ride.

[Upgrade00]

China has found another way to exert more control on the financial system within the country. I expect it will be successful and with the incentive in place people would use the CBDC as an alternative to the Yuan.

I personally do not think it will have similar success in other countries where there is more freedom and cryptocurrencies are not banned.

[_act_]

Chinese accept CBDB for bus rides? Why should we care? If I check it on news, it will be the digital Yuan and nothing more. Digital Yaun is just the CBDC that was created in China to be spent by the people if China, it is not bitcoin or crypto.

I do not see what is good in Chinese accepts Yuan. Even in any part of the country of the world, fiat is fiat. Yaun and digital yaun, no difference.

[AmoreJaz]

Yes, they started implementing this nonsense in China.

China is basically a centralized authoritarian country and CBDC will increase the centralization of the government terribly, which will be a huge burden on the citizens because all their transactions will be under the direct control of the government.

it is up to the people if they will use it or not. though learning how to use cbdc may give them some convenience, but their privacy is on the line. so they need to think about the possible repercussiom if they will heavily use their cbdc in their payment method. their govt will have more eyes on their life now. but hopefully this move will give these people a good hint why it is still good to use decentralised coins like BTC

[Uruhara]

In Asia we know that China has always been at the forefront of every step they take in their approach and economic progress. China always does not want to lose in global economic competition. and included in the adoption of the Central Bank digital financial system which they call CBDC. And actually not only on buses but in other ways China has also been testing their Digital Yuan currency CBDC. and so far they seem to be succeeding in the experiment.

[Darker45]

It's relatively easier for China to implement whatever plans the state has because of the kind of government they have. Resistance is very minimal and it could easily be addressed. Critics and other opponents of the measure could be silenced effortlessly.

While this digital currency is obviously an attack against privacy and freedom, to a people who are already deprived of it to a certain extent, nothing anymore matters.

I'm curious, is the CBDC in use the version that has an expiration date?

[icalical]

China is always pretty wild on their policy regarding digital money (including crypto), one day they ban it one day the make some breakthrough. Honestly tho, I am not being sarcastic here, but I really don't understand what is the purpose of CBDC. When a government digitalize their Bank, like when people are able to send some money through internet Banking, isn't it like make the CBDC redundant. It's the same centralized currency, people can send them across the nation, without traveling only moving some value and number throughout the internet.

[bittraffic]

Crazy that this only started this year. China had been piloting CBDC since 2020, it seem very a very slow integration to their bus system if you know how good Chinese are in developing a system. 

US had been piloting AFAIK too which Biden is about to give universal compensation since more companies are already signing up on their CBDC.

[Don Pedro Dinero]

It's relatively easier for China to implement whatever plans the state has because of the kind of government they have. Resistance is very minimal and it could easily be addressed. Critics and other opponents of the measure could be silenced effortlessly.

While this digital currency is obviously an attack against privacy and freedom, to a people who are already deprived of it to a certain extent, nothing anymore matters.

I would expect more resistance in the US and certain parts of the EU, such as Germany, which is a very cash-intensive country. I expect implementation to be much slower, due to inefficient administrations, and adoption much slower as well.

I'm curious, is the CBDC in use the version that has an expiration date?

I would be surprised if they have implemented that already. The logical, and Machiavellian, thing to do is to wait until everyone is using CBDCs to start programming them with the controversial features, such as expiration.

[Fuso.hp]

I have already read the news that China has introduced CBDC payment system for bus rides in their country. The full meaning of CBDC is Central Bank Digital Currency. This payment system is not supposed to match Bitcoin. And this news is entirely a news of their country's domestic banking system. From what I know about this payment system, this payment system may not be very popular with Chinese citizens. All of a sudden we have seen China taking some such decisions. It is not clear what exactly they want to do by taking such a decision.

[bayu7adi]

China is always pretty wild on their policy regarding digital money (including crypto), one day they ban it one day the make some breakthrough. Honestly tho, I am not being sarcastic here, but I really don't understand what is the purpose of CBDC. When a government digitalize their Bank, like when people are able to send some money through internet Banking, isn't it like make the CBDC redundant. It's the same centralized currency, people can send them across the nation, without traveling only moving some value and number throughout the internet.

I can refer to China as a country that always strives to be at the forefront in various promising fields. Currently, we see the Central Bank Digital Currency (CBDC) as a government-controlled currency, which may not be favored by Bitcoin maximalists like us. We're uncertain about what the future holds when CBDC truly becomes a new trend in the financial world.

All eyes will be on Blockchain technology, and it's not unlikely that a small percentage will take an interest in decentralized blockchain technology. Isn't this a positive aspect that Bitcoin maximalists can gain? Although it's highly improbable to adopt a decentralized system at the governmental level of a country.

[Gozie51]

The Chinese government have been long talking positive about CBDC for close to 3 years so if they now started to implement their digital yuan in their road transport I won't be surprised and that means they are gradually going to test it in another sector. China wants to dominate their people in every aspect of their life not to consider anything outside their development. They want to grow the yuan to the exclusion of any other currency. It is good for their economy actually because if you are dependent in yourself, you are likely to have a very formidable economy. From the beginning of the cryptocurrency movement, china have been back and forth on it and let us see if this new wave of crypto regulation like MICA will be bought by china if they will replicate something like that or put their people totally out from cryptocurrency opportunities.

[Husires]

Governments need CBDC because it provides them with many solutions, now they can control the economy more strictly, they do not need commercial banks, they can impose taxes easily, they can pay services without your permission and you will not need much to redistribute liquidity, salaries and everything in the country. Therefore, its adoption will be rapid once an infrastructure is developed that processes all these payments quickly and with near-zero fees.

CBDC is not a cryptocurrency and it is worse than cash in many aspects.

[Sim_card]

China tuns a controversial government and don't like go give its citizen privacy,that is why I am not surprised that the government has made CBDC and accepting it for transport. It is their own digital Yuan and not a crpytocurrency. This will enable the government have total access with your daily spending and income to monitor your financial life. This has nothing to do with bitcoin because it is a centralized currency,CBDC is a deeper entrapment on citizens to the government compared to fiat. The president of China is limiting the freedom of his citizen for him to take total control of their lives gradually.