The Chinese city of Changshu said its public sector employees, including doctors, teachers, and journalists, will be paid their salaries in the country's central bank digital currency (CBDC), or the digital yuan, as of May.

The Chinese city of Changshu saidits public sector employees, including doctors, teachers, and journalists, will be paid their salaries in the country's central bank digital currency (CBDC), or the digital yuan, as of May. The attempt will be the latest move to push for CBDC adoption in the city after several use cases like payments for public transport, medical expenses, groceries, gas, and water. Currently, more than 1.5 million residents live within the borders of Changshu. The city is located less than 100 miles from China's biggest city, Shanghai, and falls within the jurisdiction of the country's Suzhou, Jiangsu province. Suzhou gave away $3M worth of digital yuan to 10,000 residents in December last year. Taicang became China's first city to distribute salaries fully in digital yuan in July 2022. China is currently piloting its CBDC in 26 regions in 17 of its 23 provinces. CBDCs are issued and controlled by a country's government or central bank and backed by the local currency. The Chinese Communist Party, the ruling political party of the country, pushes for CBDC adoption mainly because it is subject to the direct control of the state. Cryptocurrencies, any kind of crypto transactions, and all crypto mining activities have been forbidden in China since 2021.