Digital Yuan Now Being Used to Pay Taxes in Chinese Pilot Zones

Adoption CBDC China Digital Yuan Tax

Author

Tim Alper

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...

Author Profile

Share

Copied

Last updated: 

June 26, 2023

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

Some Chinese citizens now appear to be paying their taxes in the digital yuan, with the pilot gathering pace in the nation’s fast-growing pilot area.

Per Hangzhou.com, a number of government organs in Zhejiang province are trialing solutions that involve “the online transfer of digital yuan” to pay taxes, with the cities of Hangzhou, Shaoxing, and Jinhua launching digital CNY tax payment solutions.

Last month, the Zhejiang Provincial Taxation Bureau of the State Administration of Taxation teamed up with the Hangzhou branch of the central People’s Bank of China (PBoC) to “actively explore the development of digital yuan tax payment” solutions, with “several” real-world trials carried out in the province.

From early April, a number of local tax bodies have allowed citizens to pay income tax, stamp duty, social security premiums, and fees using the digital CNY, per the report.

Major state-owned banks such as the Industrial and Commercial Bank of China, the Bank of Communications, and China Construction Bank have also been exploring “tax payment”-related business.

A Zhejiang Provincial Taxation Bureau official was keen to point out that the digital yuan was simply “a new payment method,” and not a replacement for cash and bank transfers,” adding that the token would “become an effective supplement to existing tax payment channels.”

But the official noted that the digital CNY “better supports online tax processing,” providing faster, remote tax payment confirmation.

The PBoC and its partners are now eyeing their “next step” – the Asian Games, where authorities claimed the token could play a role in calculating tax breaks and other tax-related activities.

Hangzhou is slated to host the games in September this year, and the city, as well as others hosting events related to the sporting event, have been added to the pilot early in order to help prepare another international showcase for the PBoC’s token.

Meanwhile, FJSEN reported that as of April 26, the digital CNY has been added as a payment option at the exits of 12 highway toll stations in Fuqing, one of the newer pilot areas. A number of service areas that also process highway fees have also begun accepting both offline and online digital yuan payments.

China National Radio also reported that supermarkets and department stores in Guangzhou, including the iconic Guangzhou Friendship Department Store and IKEA, have also begun accepting PBoC-issued token payments from customers.
____
Learn more: 
– Chinese Man Uses Digital Yuan to Pay Court-issued Fine in Legal First
– Ex-Chinese Central Bank Chief Says Digital Yuan Not Intended for International Trade

– Central Banks Struggle With Privacy-Related CBDC Headaches
– The Prospects, Possibilities, and Dangers of CBDCs