e-CNY transaction volume tops $15 billion in 2022
China’s central bank has called for the orderly expansion of the scope of the digital yuan pilot through interconnectivity with traditional e-payment tools to make its use-case scenarios more convenient for customers.
Quoted by the government-run China.org.cn news portal, Fan Yifei, deputy governor of the People’s Bank of China, said regulations and standards in areas such as digital identities, Bluetooth, and QR codes should be unified to improve the interconnectivity of various types of payment tools.
The deputy governor added that the scope of the digital yuan pilot will be expanded at an orderly pace. He also elaborated on improving the security of digital yuan use via upgrading relevant technologies to avoid user-information leakage and eliminate data security risks.
This isn’t the first time the People’s Bank of China has mentioned the expansion of the digital yuan pilot program this year. In another a major leap forward for the e-CNY, Chinese authorities broadened the range of public services included in its pilot project.
Two cities in Zhejiang province — Guanzhou and Ningbo — have begun experimenting with the digital RMB for paying for public bus tickets and subway rides. Passengers can now use this form of a central bank digital currency (CBDC) to pay for public transportation on 10 bus routes and 125 metro stations through the digital yuan app.
e-CNY total volume topping 90 billion yuan
Not long ago, China expanded the use of e-CNY to include paying for income tax, stamp duty and social security premiums. This development could give significant exposure to the e-CNY, which faces stiff competition from other online payment platforms.
A beta version of the digital yuan app was officially launched for iOS and Android on Chinese app stores. Although the coin has been available to some users in China for over a year under limited pilot programs, this was the first time to explore a variety of taxation payment methods using the digital yuan.
The app, which essentially involves physical cash converted into a digital form, is available on China’s Android app stores and Apple’s app store. The distribution of e-CNY takes place through a two-tier system that transfers the digital currency from the China’s central bank to commercial banks, which are then distribute the currency directly to consumers.
35 Chinese commercial banks now allow customers to access the country’s new central bank digital currency (CBDC), suggesting yet another step toward a wider rollout.
The digital yuan, which is controlled and issued by the China government, is a central bank digital currency (CBDC). Yet, the People’s Bank of China officially has not assigned a monetary value right now because the digital yuan has not been launched to the public yet.
This pilot program has since gradually been expanded through invites and cash incentives to eventually reach more than 150 million registered users with a total volume topping 90 billion yuan (about $15 billion), the central bank revealed.