The Sichuan province capital of Chengdu has adopted the use of the Chinese central bank digital currency (CBDC) – better known as the digital renminbi, for making social security payments.
The Chengdu branch of Agricultural Bank of China (ABC) has launched a trial initiative for making social security payments in the digital renminbi.
The initiative enables holders of digital renminbi wallets in Chengdu to make their social security payments via the ABC mobile banking app, in a process which reportedly takes under a minute.
Users simply access the “everyday payments – government non-tax” section of the ABC app, before entering their payments code to complete social security payments in the digital renminbi.
ABC said that the trial makes use of the “point-to-point” real-time transfer capabilities of the digital renminbi for payments purposes.
“This expands channels for municipal residents to make social security payments, resolving the problem of it being difficult to make these payments while in a different location,” said ABC.
“The entire process is traceable, ensuring the security of funds and the ability to regulate payments.”