Home Crypto Events China’s Digital Yuan Gains Momentum with $250 Billion in Transactions

China’s Digital Yuan Gains Momentum with $250 Billion in Transactions

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In a significant leap towards the future of digital finance, China’s central bank digital currency, known as the digital yuan or e-CNY, has recently reached a remarkable milestone. Since the inception of its pilot program 1.5 years ago, the digital yuan has facilitated an impressive $250 billion in transactions.

At a conference held in Singapore on July 19, Yi Gang, the governor of the People’s Bank of China (PBoC), disclosed this substantial figure. As of the end of June, a staggering 1.8 trillion yuan had been transacted using the digital currency. This remarkable achievement showcases the growing popularity and potential impact of the digital yuan on China’s financial landscape and beyond.

The journey of the digital yuan began in January 2022, and since then, it has witnessed an overwhelming acceptance among users. With around 950 million transactions executed through approximately 120 million digital wallets, the e-CNY has firmly established itself as a preferred mode of payment for various purposes.

The average value of a single transaction using the digital yuan stands at about $260, reflecting its widespread adoption for both small and large-scale purchases. The efficiency, security, and convenience offered by the digital yuan have played a significant role in its widespread popularity among the masses.

Despite the significant progress made in the adoption of the digital yuan, Governor Yi highlighted that the total circulation of the digital currency, estimated at $2.3 billion or 16.5 billion e-CNY as of June’s end, constitutes only 0.16 percent of China’s overall monetary supply. This indicates that while the digital yuan has made substantial strides, there is still ample room for further expansion.

China, home to a population of over 1.4 billion, represents an enormous market for digital payment solutions. The digital yuan’s limited acceptance outside of domestic retail payments and experimental uses in Hong Kong presents an opportunity for continued growth and exploration of its potential applications.

In pursuit of enhancing the digital yuan’s global presence, the Bank of China (Hong Kong) recently initiated a new cross-border payment mechanism exclusively for its clients at selected local Hong Kong retailers. This marks the third cross-border experiment of the digital yuan in Hong Kong, and its launch is aimed at encouraging international transactions using the digital currency.

In a previous test last year, the BOCHK enticed clients with an incentive of $14 (100 yuan) for creating a BOC e-CNY wallet and using it at the U Select supermarket chain in Hong Kong. The addition of the smart contract feature by the central bank in January further expanded the capabilities of the digital yuan, fostering its potential use in a broader range of applications.

While the figure of $250 billion in e-CNY transactions demonstrates remarkable growth, it is worth noting that this amount is still relatively small when compared to the daily transaction values handled by some of the world’s largest public blockchains. However, this milestone is indicative of the digital yuan’s increasing prominence in the digital payment landscape, signaling a potential shift towards the future of global finance.

As China continues to explore and develop its central bank digital currency, financial and tech communities worldwide are closely observing its progress. The success and widespread adoption of the digital yuan could have profound implications for the future of digital payments and the evolving landscape of global finance.

In conclusion, China’s central bank digital currency, the digital yuan, has achieved significant growth, facilitating approximately $250 billion in transactions since its pilot program launch.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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