In China, the total volume of transactions using digital yuan exceeded the $250 billion mark.
This indicator was achieved a year and a half after the launch of the digital currency of the country’s central bank. The relevant information was reported by the governor of the People’s Bank of China Yi Gang at the conference, which was organized by the Financial Department of Singapore.
In a year and a half, 950 million transactions were made using digital yuan from 120 million wallets. Yi Gang reported that the balance of e-CNY is only two-tenths of 1% of M0. He noted that this balance is very small, but it allows you to support a large number of transactions, which is a sign of high speed and a good performance indicator.
The Chinese leadership has been able to achieve significant results as part of its efforts to promote digital currency. All financial institutions of the country and virtual wallets from Alipay and WeChat were connected to the new generation currency.
The implementation of the digital money promotion program continues and provides for several more stages in the foreseeable future. As part of the next level of introduction of a new generation of currency, the decision already made to pay salaries to public sector employees in digital yuan will be implemented. Also, local authorities intend to start testing cross-border transactions using virtual currency shortly. Countries bordering China will take part in this pilot project, but it has not yet been announced which ones.
Eswar Prasad, professor of economics at Cornell University, said that China’s results in introducing digital currency are impressive, but are very modest. His opinion is justified by the fact that the electronic yuan has a share equal to 0.16% of the country’s money supply.
As we have reported earlier, Digital Yuan Now Available as a Payment Option in Qingdao Metro.