China’s digital yuan transactions topped 100 billion yuan ($13.9 billion) as of Aug. 31, the country’s central bank reported on Wednesday, as the country continues to roll out a central bank digital currency.
It is reported that the spending involved 360 million transactions in trial zones in 15 provinces and localities, and more than 5.6 million merchants can now accept payments with the digital currency.
Although adoption is still in its early stages, China is at the forefront of a global competition to build central bank digital currencies. The PBOC said that by the end of 2021, e-CNY transactions would have increased from 87.6 billion yuan.
To stimulate demand, tackle the pandemic issue, and promote low-carbon transportation, pilot locations issued over 30 rounds of e-CNY subsidies in 2022, such as $4.5 million in free digital cash in Shanghai in May.
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 central bank also participated in the Bank of International Settlements’ cross-border multiple Central Bank Digital Currency (mCBDC) Bridge trial and performed tests to interface with Hong Kong’s local digital payment system.
The e-CNY has so far been utilised mostly for domestic retail payments, but the bank stated that it will be promoted for usage in corporate and personal business, in addition to finance, taxation, and government issues.
