Chinese Digital Currency Surpasses 100 Billion Yuan: Claims PBOC

• China’s digital payment trials complete 100 billion transactio by August 2022. 
• Digital Yuan is China’s take on the Central Bank Digital Currency (CDBC).
• The country is ramping up its efforts to introduce the currency to a broader population

On Wednesday, China’s central bank reported that a total of 100 Billion Yuan (US$13.9 billion) has been transacted through China’s central bank’s e-CNY initiative. The reports were published by the People’s Bank of China (PBOC) through its official WeChat account.

According to the PBOC, 360 million transactions were processed in 15 provincial and municipal pilot areas from late December 2021 to August 2022, enabling more than 5.6 million merchants to accept the digital currency.

Although the adoption of digital currencies is still in its infancy, China is leading the global race to develop them. A total of 87.6 billion yuan were transacted through e-CNY by the end of 2021, according to the reports.

In May, Shanghai received $4.5 million in free digital cash as part of PBOC’s e-CNY subsidies to stimulate consumption, fight the pandemic, and promote low-carbon transportation, adds the People’s Bank of China.

The PBOC also connected with Hong Kong’s local digital payment system, as part of the Bank of International Settlements’ trial of cross-border multiple Central Bank Digital Currency (mCBDC).

Digital Yuan has been used mostly for domestic and retail payments during the pilot program. However, the bank aims at promoting it on a higher level by encouraging e-CNY transactions for corporate businesses, taxation, financial purposes, and government affairs.

Even though most countries are still figuring out a plan for rolling out digital currencies, China has been at the forefront of its digital currency research since 2014. The Digital Currency Research institute was established in 2016 by the central bank to nurture the progression of the digital yuan.