Use Of Chinese Digital Yuan Nears $300 Million: Report

The use of Chinese digital yuan has been nearing $300 million for a while now as more than 2 billion digital yuan has been spent in 4 million separate transactions so far. In our latest cryptocurrency news, we are reading more about it.

The transactions involving China’s digital yuan are growing as China was so dedicated to building a digital currency in 2014. More work is there to be done including the legal framework for the digital currency but the use of Chinese digital yuan is growing. More than 2 billion yuan has been spent in 4 million separate transactions according to Yi Gang who is the governor of the People’s Bank of China which is equivalent to $300 million.

China’s digital yuan is one of the most advanced digital currencies as in 2014, the country started working on the central bank digital currency when Xiaochuan Zhou, the governor of PBOC established the Digital Currency Research Institute. One year later, China started incorporating the public in digital currency experiments by issuing 10 million worth of digital yuan to Shenzhen citizens. The initiative is finally showing results.

Yi said that the 2 billion yuan has been spent in pilot initiatives and took place in four different Chinese cities with 12,000 payment scenarios. China’s central bank digital currency follows a two-tier system where the People’s Bank of China, China’s central bank, issues the digital yuan but the private companies and commercial banks distribute the currency to the customers are Yi said:

 “For a long time I see that we would have cash and digital currency coexisting in the future.”

While China seems to be rushing ahead of the curve in the digital currency field, there’s still much more work to be done. During Hong Kong’s Fintech Week conference, Yi spoke and said that there’s still a need for a “fairly complicated and fairly complete legal framework” to be created. However, the digital currency is in full swing so the frameworks can’t be that far away.

As reported, The People’s Bank of China settled over there million payments or $160 million in digital yuan according to the deputy governor Fan Yi Fei. During the pilot, the bank examined more than 6700 use cases for the central bank digital currency, and about 5000 payments in digital yuan granted to medial workers that were fighting the COVID-19 pandemic.