Digital Yuan Transactions Reach $250 Billion, Marking Rapid Adoption in China
China’s central bank governor, Yi Gang, recently revealed that transactions using the country’s central bank digital currency (CBDC) reached 1.8 trillion yuan ($250 billion) at the end of June.
Additionally, the total digital yuan in circulation amounted to 16.5 billion yuan. These latest statistics were disclosed during a lecture organized by Singapore’s central bank, the Monetary Authority of Singapore (MAS). The significant growth in digital yuan transactions is evident, as the previous year recorded around 100 billion in digital yuan transactions.
Yi also noted a total of 950 million digital yuan transactions and the opening of 120 million wallets. Despite the small balance of e-CNY relative to China’s M0 money supply, Yi emphasized that the efficiency of the digital yuan’s high velocity makes it highly efficient in supporting a large number of transactions. The People’s Bank of China (PBOC) initiated pilot trials for the digital yuan in 2019 and has since been testing it in various cities across the country.
Some cities have implemented digital yuan payments for public transportation fares, and the Shanghai Clearing House has added support for digital yuan settlements. Bank of China has also expanded digital yuan testing to include SIM cards and NFC payments.
Clever Robot News Desk 24th July 2023
