Transactions on Digital Yuan Surpass $14 Billion Target
The world’s largest CBDC pilot program is ready for expansion. It will advance customers’ payments and cross-border networks with Hong Kong.
Expansion Plans
The Chinese central bank’s CBDC program has reached the targeted 100 billion Yuan mark. It was attained just within the pilot phase of the project. This has made the digital Yuan the world’s most widely used CBDC.
The Chinese central bank reported the development via its official WeChat platform. It said the number of CBDC transactions made at the end of summer in 15 provinces hit 360 million. There are over 5.6 million stores supporting the CBDC as a legal tender.
The pilot is now going to expand further among institutions of the Chinese state. It will cover a wider range of citizen settlements.
The post said many e-government services have launched digital Yuan payment services. They support both online, as well as offline means of handling public service payments. They use the CBDC for tax rebates and monthly medical insurance special funds.
They are also used for donations and other special enterprise funds. The central bank shared further plans for the future development of the program. The plan includes starting the cross-border settlement system with Hong Kong and the Chinese mainland.
It would actively engage multilateral payment options while working with the Bank for International Settlement. It also promises to follow the rule of anonymity over small amounts. It will also follow traceability over large amounts so users can be protected.
Clear Records
China’s first CBDC trial was launched in 2020. The central bank has since then been planning to fully replace all cash with digital Renminbi. It revealed plans of expanding the CBDC operations into four provinces in September.
The provinces include Guangdong. The pilot was earlier run in some cities before that time.
Note that the central bank announced $13 billion worth of CBDC transactions this year’s January. The new update might be showing some insight. It means transactions in the last seven months were not over $1 billion.
That would be a drawback to the central bank’s plan. It would also mean that the cross-border payment system would be urgently implemented.
CBDCs seems to be the alternative adoption for several countries across the globe rather than crypto. Criticisms against the trend, however, include that it is highly centralized.
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