China’s Digital Yuan Trading Volume Nearly 1.8 Trillion Yuan: Report

Key Points:

• China’s digital yuan has been worth about 1.8 trillion yuan (nearly $250 billion) in transactions since the pilot.
• There have been about 950 million transactions from about 120 million wallets since e-CNY first launched lending in January 2022, with an average transaction amount of about $260.
• Digital yuan adoption accounts for only 0.16% of China’s currency supply, which is still tiny compared to China’s population of 1.4 billion.

The governor of China’s central bank has announced that nearly $250 billion worth of transactions have taken place using China’s digital yuan in the year and a half since the pilot began.

Of that, there have been about 950 million transactions from about 120 million wallets since e-CNY first launched lending in January 2022, with an average transaction amount of about $260.

The trial is launched to promote cross-border applications of e-CNY further and is the third cross-border trial of a digital yuan in Hong Kong, according to SCMP.

According to Cointelegraph, Yi Gang, governor of the People’s Bank of China, said at a meeting in Singapore that since the first launch of the digital yuan in January 2022, up to the end of June, The transaction volume of the central bank’s digital yuan is about 1.8 trillion yuan.

About 120 million wallets made about 950 million transactions with an average transaction value of about $260. While the adoption and use cases of the digital yuan are expanding, the digital yuan still accounts for only 0.16% of China’s money supply, according to Reuters. So far, e-CNY has been mainly used for retail payments overseas, with some testing in Hong Kong.

The People’s Bank of China (PBoC), the central bank, started working on implementing the e-CNY in 2014. The bank established the China Digital Currency Research Institute in 2016. research, design, and test the system in 2019, launch e-CNY in 2020. This is considered Digital Currency Electronic Payment (DCEP), China’s official digital currency, built by Blockchain technology and cryptography technology. Since then, China has conducted field trials in more than 20 cities nationwide.

With the advent of e-CNY, China’s economy has witnessed a dramatic shift to digitalization. Backed by financial technology (fintech) giants like Alipay and WeChat Pay and an enthusiastic public response to the mobile payments sector, China is rapidly moving towards a cashless society. In big cities like Beijing, even people who live on the streets use QR codes and mobile payment apps to get support. This near-total social, digital transformation shows the potential of e-CNY.

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