Chinese online retail giant JD.com uses digital yuan for salary payments



JD.com has been using China’s Digital Currency Electronic Payment or DCEP system since January to pay the salaries of some employees.

The e-commerce company made the news on Sunday, announcing its participation in the one-year DCEP trial show at the fourth Digital China Summit in Fuzhou, scheduled for April 25-26.

Commenting on its adoption path for the digital yuan, the company stated that, in addition to paying staff salaries, JD has also used the DCEP for business-to-business payments to partner companies and for transactions between banks.

As previously reported by Cointelegraph, JD Technology and Digital Currency Research Institute – the company’s fintech arm – has been a DCEP development partner at the People’s Bank of China since September 2020.

In December, the online retailer started accepting the digital yuan as a payment method on its website. According to a previous Cointelegraph report, JD.com received nearly 20,000 DCEP-funded orders during the first week of adoption.

JD has also supported DCEP trials and contributed approximately $ 4.6 million to Suzhou’s second public lottery event in February. Commenting on the company’s continued support for the digital yuan, Fei Peng, DCEP head of JD Tech, said: “JD Technology will continue to combine supply chain strengths, omnichannel scenarios, advanced technology and customer service. to contribute more to the DC / EP ecosystem. “

Meanwhile, JD’s continued support for the digital yuan further exacerbates the absence of AliPay and WeChat Pay in several DECP investigations. From ride-hailing services like DiDi Chuxing to streaming platforms like Bilibili, several companies are involved in the testing of China’s CBDC, except for the two largest payment gateways in the country.

Opinions on whether the DCEP will challenge the AliPay and WeChat Pay duopoly in the Chinese electronic payments market remain mixed. In October 2020, Zhou Xiaochuan, a former governor of the PBoC, argued that the digital yuan was the central bank’s counterbalance to the dollarization of the economy.