• Changshu City in Jiangsu Province announced to pay public workers with the digital yuan.
• Chinese crypto-related stocks have surged due to the announcement of using digital yuan.
• Senior financial analyst said that paying salaries in digital yuan is a good way to promote the asset.
Digital Yuan Promotions Helped Crypto Stocks Rise
Changshu City in Jiangsu Province announced on April 23rd that it would start utilizing the digital yuan, also known as e-CNY, to pay the public workers, which has helped some crypto-related stocks surge. Global Infotech Co shares rose by 13%, currently at 12.80 CNY, and Chutian Dragon Co shares grew by 8%, trading at 20.2 CNY at the time of writing.
Promotion of Digital Yuan
The rise of digital yuan is China’s national central bank digital currency (CBDC). According to a crypto.news report, this payment will affect government officials, staff members of businesses owned by the state, healthcare employees and other public servants. Wang Pengbo, senior financial analyst at BoTong Analysys told Reuters that paying salaries in digital yuan is a good way to promote the asset.
Challenges Faced By People
A doctor working in Suzhou hospital who only gave her last name Yang mentioned that she doesn’t know how to use e-CNY and since no merchant around her receives digital yuan she needs to convert it into fiat money.
Shanghai Stock Exchange’s Index Drop
On contrary Shanghai Stock Exchange’s flagship index CSI 300 dropped by 0.4%. This was reported by Reuters as well but despite this drop some crypto-related stocks witnessed an incline due to Changshu City’s announcement about using e-CNY for payments..
It can be concluded from this article that Chinese crypto related stocks have risen due to Changshu City’s annoucement about using e-CNY for payments but there still remain some challenges faced by people such as converting it into fiat money since no merchant receives digital yaun yet and for now Shanghai Stock Exchange’s flagship index CSI 300 has dropped 0.4%.