China’s Central Bank Digital Yuan Transactions Surpass $14 Billion

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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June 26, 2023 06:55 EDT

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China’s digital yuan has processed over 100 billion yuan (~$14 billion) worth of transactions so far, becoming the most widely adopted central bank digital currency (CBDC) across the globe. 

The e-CNY has recorded $13.9 billion worth of transactions as of August 31, the People’s Bank of China said via a verified WeChat account on October 10. The post added that the transaction volume increased by around 21% in two months since June.

The number of transactions made in 15 provinces within the CBDC pilot framework had reached 360 million by the end of the summer. Moreover, 5.6 million stores have already added support for the digital yuan as a legal tender.

The post further added that some state institutions have also added support for the CBDC, using the e-CNY for a wide range of purposes, including tax refunds, medical insurance, and more. 

“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 post said. 

China Leads CBDC Development

China is a global leader in CBDC development. Though the country has not announced an official launch date for its digital yuan, it has launched comprehensive pilot tests, covering more and more regions. By the end of 2021, e-CNY transactions reached 87.6 billion yuan, the PBOC said at the time. 

In late September, Fan Yifei, the deputy governor of The People’s Bank of China (PBOC), announced that they aim to further expand the trials of the digital yuan in most populous provinces, bringing the e-CNY to another 360 million people.

In late May, the country also unveiled plans to distribute over $13.51 million (90 million digital yuan) among residents of Shenzhen, Guangzhou, and Xiong’an New Area in an attempt to boost local consumption and stabilize the economy.

As per data by Atlantic Council, an American think tank, some 11 countries have launched a CBDC, which includes The Bahamas, China, and Nigeria, Africa’s largest economy, which launched its CBDC in October 2021. Jamaica is currently the latest country to launch a CBDC, the JAM-DEX. 

It is worth noting that over 100 countries, representing over 95% of global GDP, are currently exploring a CBDC. In comparison, only 35 countries were considering a CBDC by May 2020. Moreover, a total of 50 countries are in an advanced phase of exploration (either development, pilot, or launch).