Chinese Man Uses Digital Yuan to Pay Court-issued Fine in Legal First

Adoption CBDC China Digital Yuan Payments
Last updated:
Author
Author
Tim Alper
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: Adobe/S.Gvozd

 

Chinese media outlets have been reporting on a new first for the digital yuan – with the central bank-issued token used to pay a court-issued fine for the first time.

Per Chinaqw, on April 19, a man surnamed Wei, the plaintiff in a motor vehicle traffic accident liability dispute case, had been handed a fine of just over USD 105 by the People’s Court in the Lucheng District of Wenzhou, a city in Zhejiang Province.

But rather than pay the court by bank transfer, he instead decided to pay using the digital yuan, a transaction for which he “received a payment invoice” – and marking a legal first for the token.

Wei was quoted as telling the media outlet that the payment was “very convenient,” and that he had “just had to click on the phone and it was done.”

And it seems that the court officials were more than willing to see Wei opt for digital yuan payment – they even helped him to install a state-operated digital CNY application on his smartphone, and guide him through the process, with the payment “completed in less than a few minutes.”

Liu Wan Cheng, the head of the Lucheng District People’s Court, stated that people would be completely free to choose which form of payment they wished to use when paying fines – and could opt for cash or bank transfers if they preferred. However, adding digital CNY payment options, Liu added, would help the court become compatible with its vision of becoming a “globalized digital court.”

Liu was quoted as saying:

“The addition of the digital yuan as a payment option will not replace other payment methods options. On the contrary, it will provide [people] with more choice.”

But Liu added that using the digital CNY helped speed up the process of paying fines, noting that the money “reaches the court account immediately and safely,” with automatic case-number matches, and “immediate” payment certificate issuance. For courts, too, he hinted, the token could provide an efficiency and transparency boost.

As its “next step,” the Lucheng District People’s Court stated that it would “cooperate” with relevant government departments to “continue to expand application” in digital yuan litigation fee payments, looking to provide court payments using the token – possibly, for instance, in cases where courts award damages or refunds.

The court added that this would help “improve the public’s litigation experience,” as well as boost “judicial credibility and public access” to the legal system.
____
Learn more: 
Ex-Chinese Central Bank Chief Says Digital Yuan Not Intended for International Trade
New Tencent Digital Yuan Wallet Preparing to Launch

CBDCs in 2022: New Trials and Competition with Crypto

Central Banks Struggle With Privacy-Related CBDC Headaches
DeFi Could Rely On CBDC, But More Bridges With Centralized Finance Are Needed – Expert Panel

More Articles

Bitcoin News
BitcoinOS Unveils Grail Bridge Testnet App for Cross-Chain Bitcoin Interactions
Tanzeel Akhtar
Tanzeel Akhtar
2025-02-17 22:34:57
Altcoin News
Shiba Inu in Trouble as Technical Signals Flash Bearish – Where Next for SHIB Price?
Joel Frank
Joel Frank
2025-02-17 21:43:20
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors