Contents
- China Pushes Digital Yuan Adoption
- China's E-CNY Experiments in Hong Kong
- Investing in Stocks with Digital Yuan via Soochow Stocks App
The People's Bank of China (PBoC) disclosed that $250 billion in transactions had occurred in the country's central bank-backed digital currency (CBDC), digital yuan, in the 18 months from the pilot's inception.
China's central bank governor Yi Gang stated at a conference in Singapore that the central bank has transacted 1.8 trillion yuan as of the end of June.
According to the governor, there have been around 950 million transactions done from nearly 120 million wallets since the first launch of the digital yuan in January last year, with an average transaction value of approximately $260.
He also stated that at the end of June, around 16.5 billion digital yuan were in circulation, representing barely 0.16% of China's monetary supply.
The $250 billion in digital yuan transactions is a more than 70% increase over the number given by the central bank in August 2022.
China Pushes Digital Yuan Adoption
With the government extending the digital currency's use cases, retail adoption of China's digital yuan has gained substantial traction in the previous 18 months.
In addition to authorising numerous use cases inside mainland China, the central bank is seeking for digital currency use cases outside of the mainland.
As previously reported by the South China Morning Post, on July 18th, Bank of China Hong Kong launched a new digital yuan experiment at over 200 businesses, along with a new shopping festival for tourists travelling from the mainland, in an effort to increase cross-border usage of the CBDC.
China's E-CNY Experiments in Hong Kong
In the previous year, China had undertaken a few experiments in Hong Kong.
The extension to Hong Kong is intended to "further promote cross-border applications of e-CNY," according to a statement from BOCHK.
In 2023, the BCHK launched a programme to encourage clients to open a BOC e-CNY wallet. Customers got digital red packets worth 100 yuan, which could be used to buy things at 14 U Select sites around Hong Kong.
China's central bank introduced digital smart contract capability, as well as a plethora of new use cases, in January.
Meituan, a retail and food delivery service app, offers smart contract capability.
According to the China Securities Journal, the digital yuan was utilised to acquire securities for the first time in January.
Investing in Stocks with Digital Yuan via Soochow Stocks App
According to the article, investors may also utilise digital yuan to purchase stocks using the Soochow stocks app, which is run by a local brokerage business.
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