The Chinese city of Changshu has stated that all civil servants in its jurisdiction will be paid their full salaries in digital yuan starting May 2023, according to local reports.

According to a notice issued by financial authorities in the city, civil servants — including those in public service, public institutions and state-owned units at all levels — will be compensated in digital yuan

An on-site staff member of a local hospital reportedly confirmed that the workforce would receive payments in digital yuan starting next month. In addition, reporters were told that employees can opt for digital yuan settlements through self-service terminals.

A QR code (blurred) for paying with digital yuan is displayed at a Chinese convenience store. Users can scan the code and use the digital yuan to pay for goods. Source: Wikimedia Commons

On Feb. 6, multiple Chinese city governments gave away over 180 million yuan ($26.5 million) worth of the central bank digital currency (CBDC) during Lunar New Year celebrations to boost adoption.

The Jiangsu province, where Changshu is located, previously initiated a pilot program for the digital yuan in Q1 2023. The objective, according to a local report, is to establish an efficient, convenient operation and management system by 2025.

Related: China’s central bank includes digital yuan in report on currency circulation

The Chinese government’s push for CBDC adoption has not been well received by Hong Kong residents. In the first four days of the digital yuan wallet’s hard launch, only 625 residents had signed up.

The lack of adoption was evident, despite a 20% discount on purchases from 1,400 local vendors — subsidized by the government for CBDC holders.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips