Do Chinese really not want the digital yuan? – Report and comparison with other countries

Chinese Population Shows Little Interest in Digital Yuan – Report

The masses in China do not exhibit a large interest in the country’s central bank digital currency (CBDC), known as the digital yuan. A report published by the South China Morning Post examined cases where Chinese citizens receive salaries in the form of the digital yuan (e-CNY) and immediately convert them into physical yuan.

Low Popularity of Digital Yuan Among State Workers

State employees receiving salaries in e-CNY usually convert them into cash due to lack of interest and limited acceptance of the digital yuan. Compared to widely accepted apps like Alipay or WeChat Pay, the digital yuan is not as popular.

e-CNY Transactions

According to the report, e-CNY transactions totaling over $250 billion took place by July last year. Despite these figures, the adoption of the digital yuan among ordinary Chinese citizens is proving to be more challenging than initially anticipated.

CBDC Also in Nigeria and Rwanda

In addition to China, other countries are also considering launching their own CBDCs. In Nigeria, eNaira has so far been responsible for transactions worth $20.3 million, mainly due to concerns about data privacy and a limited number of active accounts.

Public Support for CBDC in the USA

In the United States, public support for CBDCs is limited, as evidenced by the introduction of the CBDC Anti-Surveillance State Act. Decisions regarding central bank digital currencies in different countries reflect local realities and citizens’ concerns about data privacy and security.

Actions Against Illegal Trading

Despite the low popularity of the digital yuan in China, there is significant activity in illegal trading of unauthorized digital assets. In Jilin province, a recent crackdown halted the operations of an illegal bank engaged in virtual transactions worth up to $296 million, highlighting the need for effective regulation in this field.

CBDC Playbook by nChain

If you want to learn more about CBDCs and the design decisions related to central bank digital currencies, it is worth exploring the CBDC Playbook by nChain. This document can shed light on the technical and economic issues associated with the introduction of state-backed digital currencies.