HAIKOU /China/, Dec. 13. /TASS/. The authorities of South China's Hainan province are testing a new system of collecting taxes in digital yuan, the Sanya Daily reported.
According to the newspaper, several local companies have signed agreements with regional government agencies to switch to this new form of tax payments. The signing ceremony for the agreements was held in Haikou, the administrative center of Hainan.
"These measures are important. They will expand the use of the digital yuan and contribute to the digitalization of the economy as well as to the creation of a new system of mutual settlements," said Liu Lei, Director of the Hainan Provincial Taxation Bureau of the State Administration of Taxation.
As Chen Ping, chief economist of the bureau, clarified, Hainan has created a new and more efficient channel for taxpayers. "Thus, further steps have been taken to greatly simplify fiscal procedures," he said.
"It is a fast, convenient and also a secure way to transfer payments, allowing for the privacy of personal information," added Liu Li, the assistant of Director General of Zheshang Development Group Company's Hainan branch.
Introduction of the digital yuan in the PRC
China began introducing a national virtual currency at the end of 2019. Many cities, including Beijing, have joined the project. There are already more than 3.5 million outlets in the country where this type of payment is available, reaching 62 billion yuan ($9.7 billion) by November.
This form of mutual settlements is used in the field of transport and public catering. The digital yuan also accepted in the sphere of public services. It is expected that a new stage in the development of this system will come in February 2022, when the Chinese capital will host the Winter Olympics.