1.1 Billion Digital Yuan Traded In China

1.1 billion Yuan (RMB) is equivalent to 162 million USD which is the total value of millions of digital currency transactions used through the pilot digital currency program run by the People’s Bank of China (PBOC).

On October 5, speaking at the financial and banking conference of Sibos, the deputy governor of the People’s Bank of China (PBOC), Mr. Fan Yifei said that up to now, a total of 3.13 million transactions have been processed by digital currency through PBOC’s pilot program in cities like Shenzhen and Hung An.

During this conference, PBOC deputy governor said that the trials have made “positive progress” with many different types of transactions from bill payments, shipping to government transactions.

According to Mr. Fan Yifei, this currency can be used through many different payment methods such as barcode scanning, facial recognition… “The PBOC believes that the digital yuan will become the infrastructure of wealth. key in the future ”.

To give evidence, he revealed that the government had cooperated with the local government of Shenzhen to use digital Yuan red packets to reward 5,000 medical and health care workers who had participated in Covid 19 treatment.

Up to now, 113,300 individuals and 8,800 businesses have opened digital wallets as part of this large-scale pilot program. The digital yuan is expected to be the driving force behind the world’s second-largest economy toward a cashless society, allowing consumers and businesses to pay for goods entirely with e-wallets.

China is currently the largest market globally in mobile payments. In this billion-dollar country, users of digital payment services through AliPay (Ant Group – a subsidiary of Alibaba) or WeChat Pay (Tencent) have seen rapid growth in the past few years. Against this backdrop, the Beijing government is ambitious to promote the development of digital money as a tool to transform the domestic economy, ahead of many central banks globally.

Meanwhile, the digital currency that the PBOC issues will give it the ability to control and monitor the performance of the real economy.

People’s Bank of China (PBOC)

In 2019, China announced that it was in the process of researching and developing a digital currency. Under the management of PBOC Central Bank, digital money allows commercial banks and third-party financial services companies such as Alipay, WeChat Pay to use payment transactions quickly. and convenient.

A source revealed last year also pointed out that China’s digital currency is not based on a blockchain prototype system like Facebook’s Libra project, but will develop a complex, diverse operational architecture. more to meet the huge potential demand of the Chinese market: high speed, good security, convenient transactions. Accordingly, PBOC will run a pre-4.0 system on a two-tier operating system to promote accessibility and convenience of transactions. PBOC will act as the senior issuer and other commercial banks are both legitimate secondary issuers of money 4.0.

“Since this system does not go through intermediaries, it will thoroughly solve the restrictions related to cross-border transactions, transaction times are long…” Mr. Shafou Jun, president of China UnionPay said.