e-yuan’s steamroller – Although still in the testing phase, the digital yuan and its DC/EP (Digital Currency/Electronic Payment) system continues to process impressive volumes of transactions. Barely a month after the first exchange volume figures were announced, these have already doubled!
2 billion digital yuan exchanged
Yi Gang, governor of the People’s Bank of China (PBoC), spoke on Monday 2 November at the Fintech Week conference in Hong Kong, as reported by Reuters. It was an opportunity to take another look at the real-life testing of the Digital Currency/Electronic Payment system of its digital currency.
The PBoC leader explained first of all that the DC/EP system has now processed a volume of more than 2 billion yuan, or nearly $300 million.
As a reminder, this digitised version of the renminbi is being tested in full scale in 4 major Chinese cities (Shenzhen, Suzhou, Xiong’an, and Chengdu).
The Chinese DC/EP passes the 4 million transactions
There are now reportedly more than 12,000 cases of digital yuan use, which have generated more than 4 million separate transactions.
The significant increase in these good results is undoubtedly partly linked to the distribution of the equivalent of 1.5 million dollars during a lottery organised by the Chinese authorities in Shenzhen. As a result, 50,000 residents of the neighbouring city of Hong Kong were each able to spend a gift of 200 e-yuans in selected DC/EP-compatible shops.
DC/EP China State-owned yuan renmibi digital crystals
Although the tests are The News Spy so far going „quite smoothly“, Yi Gang reminds that the present pilot tests are only the beginning.
„For quite a long time to come, I foresee that cash and digital money will coexist in the future (…) [digital money] still requires a rather complex legal framework, which also needs to be sufficiently comprehensive“.
Initially, tests of the digital yuan will first be extended to other regions of China, in order to verify the technical soundness of the DC/EP system, which is still experimental.
The first operational figures for this digital central bank money (DBCM) made in China are, in any case, impressive. Especially when compared to the relative contemplative inaction and procrastination in Europe or the United States. China is increasingly extending its lead in the race for MNBCs.