- The Chinese Digital Yuan was first used to pay Local Taxes.
- The First loan issued in digital Yuan of nearly $445K US dollars to ” enterprise talent.”
After banning all foreign country’s cryptocurrencies and digital assets, the Chinese central Bank launched their own digital currency, which is coined Digital Yuan.
The Chinese central Bank’s digital currency, Yuan, is gaining popularity in China, and citizens are adopting the transactions to be done by the digital currency.
Qi was the first Chinese citizen to use the first digital currency of the Chinese central bank, Yuan. HE is a small-scale businessman running his decoration company in Guangzhou and was mentoring the decoration in District Dinghu, China. For his decoration work, he received his payment in the form of Digital Yuan; for this, he has paid taxes and submitted transaction history to the local body.
Qi decided to pay the taxes, not in the form of Fiat currency; instead, he took the initiative of transferring the taxes in the form of Digital yuan to the responsible authorities.
A hike in paying taxes was mirrored in China using the Digital Yuan(CBDC). The number of users increased by the encouragement and motivation by local and departmental authorities to use Digital Yuan. The official of the Central Bank of China appreciated Digital tokens and told citizens about the key features of the Digital Yuan. Like an easy transaction, faster than any other currency, and easy to store and operate.
A Small Chinese company,” enterprise talent.” took the biggest initiative of using the Central bank Digital Currency and took a loan from the Central Bank amounting to 445K Digital Yuan, comparable to 445K in US dollars.
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Conclusion
China is listed as one of the most successful countries in the technology sector and manufacturing of cheap products. In the last few years, china banned the usage of foreign digital cryptocurrencies from promoting the first digital currency of the Central Bank, “Digital Yuan.” Because of its massive population and resource availability, Chinese people adopt things easily. Usage of the Digital Yuan increased in the last few months because of no interest charges and will be a legal tender in the country.
Source: https://www.thecoinrepublic.com/2022/07/21/digital-yuan-first-used-for-paying-local-taxes-will-continue-to-expand-use-cases/