Thomas Daniels
China’s Central Bank Digital Currency (CBDC) initiative has hit a significant milestone, registering 180 million personal wallets and processing a total transaction volume of ¥7.3 trillion ($1.02 trillion) across its pilot regions.
In a column for SINA, Changchun Mu, director-general of the People’s Bank of China’s (PBoC) Digital Currency Institute, outlined the rapid expansion of the digital renminbi, or e-CNY, since its early trials. The PBoC has been pioneering the e-CNY project since 2014, with key pilot cities including Shenzhen and Beijing. The official e-CNY app has since been integrated into sectors like retail and public transportation, facilitating a seamless transition to digital currency.
However, adoption has encountered some resistance. Sammy Lin, an account manager at a state-owned bank in Suzhou, pointed out that many users remain hesitant to store funds in digital yuan wallets, citing limited functionality and the absence of interest earnings as key concerns.
China’s efforts align with a global surge in CBDC exploration. According to the Atlantic Council, 134 countries were investigating digital currencies as of September 2023, a sharp increase from 35 in 2020. This includes major economies like India, Brazil, and Australia, with all G20 nations now in advanced stages of CBDC development.
