China’s central bank digital currency – CBDC – has reached $14 billion (equivalent to 100.04 billion yuan) recorded on 31 Aug 31.2022. On the official WeChat announcement by the Bank of China, there are 15 provinces within the CBDC pilot framework that made 360 million transactions. 5.6 million merchant stores use and support the digital yuan as means of payment, making the largest CBDC adoption in the world.
The total transactions raised 36.3% since June 2022 with an average of 277 yuan (US$38.57)/transaction, which increased by 20.9%.
“Multiple e-government service platforms have opened digital renminbi payment services, supporting online and offline channels to handle various public utility payments, using digital renminbi to issue tax rebate funds, special funds for monthly medical insurance payment, funds for helping people in need, and ‘specialized, special and new’ enterprise support funds, etc.
The CBDC pilot has a wide range of payments for users. To executive this adoption, the financial regulator collaborated with relevant entities, implementing the cross-border payments between Mainland China and Hongkong. All transactions follow the regulation of the Bank of International Settlement with the principle of “anonymity for small amounts and traceability of large amounts”.
Since its first launch in April 2020, the bank of China aims to replace traditional cash with digital yuan. In Sept, four countries’ provinces expand the e-CNY. Currently, there are 23 cities deployed e-CNY, making it available to apply new e-currency to more provinces at the end of 2022. Digital Yuan has been tested in many aspects: transportation, retail, and medical care.
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