Project payment settled by digital yuan in east China

A consumer (R) pays with digital yuan at a department store in Suzhou, east China's Jiangsu Province, Dec. 11, 2020. (Xinhua)

NANJING, March 26 (Xinhua) -- Three construction project payments were successfully made through China's digital fiat currency, or the e-CNY, in the eastern Chinese city of Suzhou on Friday, the local digital finance department said.

It marks the first time that digital yuan have been used for project payment in such fields as real estate and urban landscaping, according to the digital finance development bureau of Suzhou High-Speed Rail New Town, one of the country's current digital yuan pilot regions.

The total transaction of 554,950 yuan (about 87,183 U.S. dollars) was completed through the digital yuan wallets of the Industrial and Commercial Bank of China and China Construction Bank within seconds.

"This is the first time we've tried the digital yuan. The transfer is truly faster, safer and more convenient," said Lu Wei, general manager of Suzhou Baorong Construction Project Management Co., Ltd., also the payee of the project.

More than 40 digital yuan pilot scenarios have been developed in Suzhou High-Speed Rail New Town, including in fields like electricity bill payment, subway ticket purchase and hotel and canteen services, said Zhou Xilang, deputy director of the digital finance development bureau of the new town.

China's digital yuan transactions hit nearly 87.57 billion yuan at the end of 2021, as the country ramped up the research and pilot use of the central bank's digital currency.

China's efforts in developing its central bank digital currency started in 2014 when it first conducted relevant studies, followed by the bank's moves to engage in research and development cooperation with commercial banks and internet companies in 2017.