The concept of central bank digital currency (CBDC) is now a widely discussed topic amongst many central banks globally, including the governments. Many countries have declared interest in issuing a CBDC as the world transitions to digital means of payments. The People’s Republic of China has been at the forefront in the development of the national digital currency.
Several announcements have been issued about the long-planned Digital Yuan, which is currently being testing in several regions of the country. In spite of the broad testing of the planned national digital currency, there is no actual date given for the launch of the Digital Yuan.
China Made $162 Million Transactions With Digital Yuan
According to the report today by South China Morning Post, the country processed a total of $162 million worth of transactions with the Digital Yuan, in ongoing pilot programs. This was confirmed by the statement of Fan Yifei, the deputy governor of the People‘s Bank of China (PBOC), during the Sibos banking and financial conference held today. This is quite an important event that shows how huge the Digital can grow when it finally launches to the public.
In line with Yifei, the $162 million was netted from about 3.13 million transactions made during the CBDC tests in major provinces of the country, including Shenzhen and Xiongan. There are now more than 6,700 use cases implemented for the Digital Yuan, such as paying for bill payment and transport to government services. Payments with the digital currency can now be processed using facial recognition, bar code, and tap-and-go transactions.
“PBOC regards digital renminbi as an important financial infrastructure for the future,” the PBOC deputy governor added.
Chinese CBDC Achieves More in Pilot
The Chinese planned national digital currency has unarguably achieved more use cases despite it is still in the testing mode. There are over 113,300 personal digital wallets and 8,800 corporate digital wallets developed for the CBDC as part of the test programs. While commenting on these massive achievements, the deputy governor added:
“The central bank’s e-yuan, known as Digital Currency Electronic Payment (DC/EP), would further push the world’s second-biggest economy towards a cashless society by allowing consumers and businesses to pay for goods with e-wallets, rather than traditional banknotes.”
In spite of all these things, it remains unknown when the digital currency will be fully launched.