Civil servants in the Chinese city of Changshu will soon be receiving their salaries in digital RMB or digital yuan, according to a notice issued by local authorities.

The Changshu Local Financial Supervision Bureau and the Changshu Municipal Bureau of Finance stated that civil servants, including public service personnel, public institution personnel, and personnel of state-owned units at all levels in the city, will be compensated in digital RMB payments starting from May 2023.

A staff member from a local hospital confirmed that the city’s workforce will receive payments in digital yuan next month. Employees will also have the option to choose digital yuan settlements through self-service terminals.

This move comes after several Chinese city governments distributed over 180 million yuan ($26.5 million) worth of central bank digital currency (CBDC) during the Lunar New Year period to boost adoption.

Changshu is located in Jiangsu Province, which has initiated a pilot program for digital RMB in Q1 2023. The province aims to establish an efficient and convenient digital RMB operation and management system by 2025, according to local reports.

However, the Chinese government’s push for CBDC adoption has not been well-received in Hong Kong. Despite a 20% discount on purchases from 1,400 local vendors, subsidized by the government for CBDC owners, only 625 Hong Kong residents had signed up for the digital yuan hard wallet launch in the first four days, indicating a lack of adoption in the region.