Shanghai, one of the cities where China is testing its digital yuan, recently made its first subsidy for corporate talent using e-yuan, starting with an industrial products retailer and a maker of semiconductor testing equipment.

State-backed lender China Construction Bank and the Human Resources and Social Security Bureau of Qingpu district jointly awarded CNY3 million (USD445,000) in e-yuan to Zhenkun Industrial Supermarket and Shanghai JF Technology Development, according to China News Service.

The move not only expands the application scenario for the digital currency, but also innovates the partnership between banks and government agencies, industry insiders said.

The e-yuan issued by the People’s Bank of China is being tested in more than 20 cities, including Beijing, Shanghai, and Guangzhou. Financial institutions in the cities have usually distributed the digital money among residents in the form of coupons for designated stores.

The digital yuan had been used in over eight million scenarios as of the end of last year, according to PBOC data, with some 261 million personal e-wallets handling transactions worth CNY87.6 billion (USD13 billion).

Source: Yicai