A Chongqing-based company became the first in the city to pay taxes with China’s central bank digital currency (CBDC), the digital yuan, according to local media.
See related article: China to issue free digital yuan to boost locked down economy
Fast facts
- Power Dekor, a flooring and decor supplier, paid 3,009 yuan (US$452) in taxes on June 1, through a digital yuan wallet backed by the Industrial and Commercial Bank of China (ICBC).
- Chongqing taxpayers will be able to use digital yuan to pay fees including taxes and social security premiums, the local taxation bureau said, according to Chongqing Daily.
- China’s CBDC, the digital yuan or e-CNY, started pilots in Shenzhen in October 2020 and has since expanded to 23 cities, with the southeastern municipality Chongqing joining in April 2022.
- Local media reported digital yuan tax payment trials in at least 18 of the 23 pilot cities.
See related article: What I learned from my role in digitizing the yuan