​Chinese Employees Pay Social Insurance Fees, Taxes with Digit | Crypto Mountains

​Chinese Employees Pay Social Insurance Fees, Taxes with Digital Yuan

A growing number of Chinese employees and firms can now use the nation’s Central Bank Digital Currency (CBDC) – the digital yuan – to pay their social insurance premiums and taxes.

Per reports from the Chinese media outlets JS China and NH News, citizens in Lianyungang and other cities in the digital yuan pilot zone can now use the People’s Bank of China (PBoC)’s digital yuan app to pay their social security and basic pension insurance fees.

Most Chinese employees are obliged to pay social security insurance fees, with the money being used to pay for healthcare and pension funds.
In the past, employees often needed to use third-party solutions to pay these fees. This was particularly true of flexible-time workers, the self-employed, and freelancers.

But JS China told the story of “Ms. Liu,” a flexible-time worker in Lianyungang. “A few days ago,” Liu became the first person in the city to pay their insurance fees using the CBDC.

The media outlet stated that Liu was shown how to complete the process in the service hall of the Lianyungang Branch of the Agricultural Bank of China, one of the PBoC’s biggest commercial banking partners.