Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. Today I will be looking at the recent announcement from the Chinese Central Bank, where they claim their Digital Yuan, a Chinese Central Bank Digital Currency (CBDC) has completed more than $250 Billion in transaction volume.
People’s Bank of China
The People’s Bank of China (PBOC) has announced that over $250 billion worth of transactions have already taken place with the nations central bank-backed digital currency (CBDC), the digital Yuan, which was released 18 months ago as part of its pilot program. This was revealed at a conference in Singapore, where China’s central bank governor Yi Gang noted that the central bank has transacted 1.8 trillion yuan as of the end of June.
Since the digital Yuan was released in January of 2022, a total of 950 million transactions have been made from the 120 million wallets. The average transaction amount has been around $260. He went on to claim that 16.5 billion digital yuan or so was currently in circulation, and by the end of June that represented around 0.16% of China’s monetary supply. This shows that while the pilot scheme has been going well, the overall adoption is still minimal compared to China's overall 1.4 billion strong population. The number of transactions represents a growth of over 70% compared to the figure the central bank expected back in August 2022.
Retail Adoption
So far the retail adoption of the Chinese Digital Yuan has gained significant momentum, as the government expands the currency's use cases. Its main use case has been for domestic retail payments, but it has also been used for a couple of trials in Hong Kong. The Bank of China Hong Kong (BOCHK) began a new trial of the digital Yuan with more than 200 outlets on the 18th of July, as a new shopping festival for people traveling from the mainland took place. This was an attempt to increase the cross-border use of the CBDC. The BOCHK noted:
"The expansion to Hong Kong aims at “further promoting the cross-border applications of e-CNY”
In a trial over the last year the BOCHK also encouraged people to create a BOC e-CNY wallet. In doing so, they would receive $14 (100 yuan), which they could spend at 14 locations of the local supermarket chain, U Select, spread across Hong Kong.
In January 2023 the Chinese Central Bank also introduced smart contract functionality into its digital Yuan, meaning that the currency came with a host of new use cases. The smart contract functionality was launched through the retail and food delivery service app Meituan. It was also reported in January 2023 that the digital yuan was used to buy securities for the first time, and investors can use digital yuan to buy securities on Soochow Securities app, a local brokerage firm.
Have a great day.
Peace. CryptoGod-1.
** I first posted this article on Medium on the 23rd of July 2023, which can be found here: https://medium.com/@1r3n9project/chinese-digital-yuan-hits-250-billion-transaction-volume-b0290606b26d?sk=27fbeb3e9fbe91e99bf818bd86423492 **
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