David Edwards
China’s digital yuan initiative is making significant strides, accumulating a transaction volume nearing $1 trillion, according to Lu Lei, Deputy Governor of the People’s Bank of China (PBOC). The digital currency, known as the e-CNY, has undergone over a decade of research and four years of extensive pilot programs across 17 regions. As of June, transactions through the digital yuan reached 7 trillion yuan.
Key Milestones in China’s Digital Yuan Development
Lu Lei’s statements were made during a recent press conference hosted by China’s State Council Information Office, where he highlighted the success of the digital RMB’s pilot programs. The trials have spanned multiple sectors, including wholesale, retail, education, tourism, and medical care, producing scalable and replicable solutions for digital payments.
The PBOC has implemented a “two-tier operating structure” for the digital yuan, with central bank oversight combined with operational institutions, ensuring financial stability while driving technological advancements.
Impact on Financial Inclusion and Payment Efficiency
The Deputy Governor underscored the digital RMB’s role in enhancing financial inclusivity, boosting domestic consumption, and improving payment efficiency. He pointed out that the digital yuan supports green initiatives and contributes to a more optimized business environment.
International Cooperation on Cross-Border Digital Currency
In addition to its domestic progress, China is collaborating with central banks from Hong Kong, Thailand, and the UAE on a cross-border digital currency project led by the Bank for International Settlements. This initiative aims to streamline global payment systems and reduce inefficiencies, with real transactions already underway between participating nations.
