Taxes in digital yuan please! – With repeated bans, if there is one thing that is certain it is that China does not like the Bitcoin (BTC). Thus, there is no chance that the country of the rising sun will accept the payment of its taxes in cryptocurrencies like the Argentine capital, Buenos Aires. However, regarding its central bank currency (MNBC) things are quite different. Indeed, three cities in the country are preparing to accept the digital yuan for the payment of taxes.
Three cities in China accept digital yuan for tax payment
According to local media, the citizens of three major cities located in Zhejiang province (south of Shanghai) began to pay taxes premises, stamp duties and social security contributions with the Chinese MNBC, the digital yuan (e-CNY).
The Zhejiang Provincial Tax Bureau is working with the People’s Bank of China (PBoC) toanalyze different payment methods taxes with e-CNY.
Additionally, the PBoC and local government agencies that the Central Bank collaborates with are working on another major digital yuan project. This project is the use of e-CNY during the Asian Games which will take place in Hangzhou next September. According to the local authorities, the use of the MNBC could make it possible to streamline tax calculation.
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Citizens will receive digital yuan in a red envelope
In addition, the Futian district government in Shenzhen has announced that it will distribute 15 million digital yuan (is around 2.13 million euros) has his 130,000 inhabitants. This distribution of digital yuan is intended toincrease purchasing power undermined by the COVID-19 pandemic, while making the promotion of the MNBC.
Residents will receive e-CNY in the form of a red envelope via the Chinese instant chat application, WeChat. In Southeast Asian culture, monetary gifts are normally distributed in packets or red envelopes. These colorful packages provide wishes of luck to the addressee, hence this somewhat atypical distribution.
Finally, according to figures reported by Chinese state media, digital yuan transactions amounted to almost 87.6 billion yuan at the end of 2021.
We will see if China takes advantage of the Beijing 2022 Winter Olympics to promote the digital yuan. In any case, this hypothesis is feared by the United States that stays behind in the development of their MNBCs.
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