Citizens living in three major urban areas in China have reportedly started utilizing the nation’s CBDC – the digital yuan (e-CNY) – for completing tax payments, stamp duty and social security premiums. 

Specifically, a variety of government agencies in the Zhejiang province – situated in the south side of Shanghai – are reportedly carrying out real-world trials programs at the moment, which center around having residents finalize tax payments with the assistance of the digital yuan. 

The Zhejiang Taxation Bureau is reportedly collaborating with the nation’s central bank – the People’s Bank of China (PBoC) – to deep dive into different measures for completing tax duties using the digital yuan.

The PBoC and associated local government agencies are reportedly gearing towards conducting the next major test for the digital yuan, the Asian Games which will occur in Hangzhou this September. 

Authorities in the region are reportedly stating that the digital yuan carries benefits fit to bring enhancements to the calculation process of tax-associated activities.

After the stages of implementing the digital RMB pilot program proved to be successful, with public testing initiated in April last year, the PBoC revealed its intention of exploring the option of widening the scope of the program to cover extra Chinese cities including Guangzhou, Tianjin and Chongqing.

On the other side of the ledger to taxation, one local government has reportedly decided to “airdrop” 15 million digital yuan (roughly $2.25 million at the time of writing) to its residents, in an effort of fast-tracking consumer spending throughout the global health crisis, as well as promoting the use of the new currency.

Approximately 130,000 residents of the Futian district in Shenzhen will reportedly be subjected to a share of the 15 million digital yuan (e-CNY) in the form of a red envelope via the Chinese social media app, WeChat.