China's central bank digital currency (CBDC) project has reached the mark of close to $14 billion, or 100.04 billion yuan, of made transactions during its pilot phase. It makes the digital yuan, also known as the e-CNY, the most widely adopted CBDC in the world.
China's enterprising CBDC (central bank digital currency) project has touched a remarkable milestone of closing 100.04 billion yuan ($14 billion) transactions during its pilot phase. This makes it the most prominent digital currency pilot project in the world. The project aims to expand into citizen payments and cross-border operations with Hong Kong.
The Chinese government also believes that more efficient payment mechanisms for cross-border payments will help secure "anonymity for small amounts and traceability for large amounts" to safeguard user data.
Nearly $14 billion, or 100.04 billion yuan, has been exchanged during the pilot stage of China's central bank digital currency (CBDC) experiment. As a result, the electronic Chinese yuan, or e-CNY, has occupied the top spot as the most commonly used central bank digital currency worldwide.
According to data published on the Bank of China's official WeChat page on October 10, 360 million transactions under the CBDC pilot program were finished by the summer's end across 15 provinces. According to the research, more than 5.6 million retail locations already accept digital yuan as legal tender.
The pilot, which is also being expanded among several state organizations, covers a range of citizen payments:
Numerous e-government service platforms have introduced digital renminbi payment services, enabling online and offline channels to handle various public utility payments. Among other things, the digital renminbi is used to issue tax rebate funds, special funds for monthly medical insurance payments, funds for helping people in need, and specialised enterprise support funds.
The issue is that 84 per cent of blockchain patent applications are submitted in China. China's central bank has been trying to eventually replace currency with the digital yuan since the beginning of its CBDC trials in April 2020. It announced intentions to extend the deployment of the e-CNY to four of the nation's provinces, including Guangdong, in September 2022. (earlier, the pilot ran only in separate cities).
Interestingly, The Bank of China reported approximately $13 billion (87.5 billion yuan) in transactions by January 2022; the most recent update may indicate that the total value of new transactions in the previous seven months was under $1 billion.