The Chinese Central Bank achieves a breakthrough in the development of its digital currency – e-CNY in its final form!
The People’s Bank of China Achieves Milestone in the Development of Digital Currency
The People’s Bank of China (PBOC) has recently announced reaching a milestone of 100 billion yuan (13.9 billion US dollars) worth of transactions in the digital currency known as e-CNY. This is a significant step in the process of implementing modern forms of payment by one of the world’s largest economies.
Increase in Transaction Volume in Chinese e-CNY
This year, the transaction volume in Chinese e-CNY has increased by 14% from 87.6 billion yuan at the end of 2021. However, it is worth noting that the growth rate has slowed compared to the previous period, during which there was a 154% increase between June and December of last year.
Dynamism of e-CNY Development in China
The People’s Bank of China did not disclose an update regarding the number of open e-CNY wallets, which stood at 261 million at the end of 2021. Although the transaction volume of e-CNY is currently much smaller than that handled by major payment platforms in China such as WeChat Pay and Alipay, the development of the digital currency is progressing rapidly.
e-CNY Trials in 23 Chinese Cities
Currently, e-CNY is being tested in 23 Chinese cities, including major metropolises like Beijing, Shanghai, and Shenzhen. These tests aim to assess the efficiency and acceptance of the digital currency among the public and facilitate a gradual transition to modern forms of payment.
Global Trend in the Development of Central Bank Digital Currencies
Interest in central bank digital currencies is growing not only in China but also in other countries. Central banks and governments of many economies worldwide are considering introducing their own digital currencies, partly in response to the increasing significance of cryptocurrencies and due to China’s high technological and financial ambitions in this field.
In conclusion, the development of the e-CNY digital currency in China represents a significant step towards improving the payment system and aligns with global trends in financial development. The introduction of central bank digital currencies has the potential to revolutionize how transactions are conducted and money is stored worldwide.
