E-CNY is a digitized version of China’s cash and coins transferred using its blockchain ledger. Those experts have been monitoring efforts in China and other countries developing and piloting central bank digital currencies (CBDCs) to establish blockchain-based virtual cash that is cheaper to use and faster to exchange, both at home and across international borders.
Starting from December 2022, e-CNY in circulation has been included in the amount of currency in circulation. Showing currently, the Bank of China has distributed the digital yuan to 15 of China’s 23 provinces, and it has been used in more than 360 million transactions totaling north of 100 billion yuan, or $13.9 billion.
These changes in the money supply reserved by the central bank are arrived grew at 15.3%, the fastest pace in 11 months, to 10.5 trillion yuan in December 2022, with the digital yuan representing only 0.13% of the total. According to the data, The number seems didn’t show significant changes. “What needs to change is the digital yuan acting only as a substitute for cash and only for consumption,” Xie, a former PBOC director-general of research, said at the conference on digital finance held by Tsinghua University.
By Ashley Jones