Digital yuan transactions totaled $14 billion, but adoption stalls.
China’s CBDC transactions hit a $14 billion milestone. However, use is falling, it is not the boom of a year ago.
- Digital Yuan Transactions Reached $14 Billion
- Usage is slowing down
- Transactions increased by 14% this year, but in 2021 the increase had been 154%
Many believed that the eCNY either the digital Yuan, or the central bank’s digital currency (CBDC) of China, would even have the power to become a currency for international use. In this regard, many central banks around the world are exploring the development of a CBDC, partly in response to China’s ambitions in this area.
Others, on the contrary, made fun of those who thought that the digital yuan was going to prevail since they considered that it would not be successful in adoption even in the country itself. It seems that the latter is closer to the current reality.
According to reports, while the volume of transactions with eCNY is up 14% in 2022 from the end of last year, this percentage is minimal compared to the 154% growth registered in the last six months of 2021.
China’s central bank’s digital currency hit a 100 billion yuan (nearly $14 billion) worth of transactions milestone amid a slowdown in adoption, it reported today. South China Morning Post, citing data from the People’s Bank of China.
The bank did not provide an update on the number of wallets eCNY opened, which reached 261 million by the end of 2021, according to the report.
The 100 billion yuan figure is also dwarfed by the volumes registered by the main payment providers in the country what WeChatPay of Tencent Y Alipay of AntGroup. The latter, for example, processed 118 billion yuan ($16.4 billion) worth of payments in the 12 months ending June 2021, according to the media report. South China Morning Post.
The CNY of China is being rolled out on a trial basis across the country, with 23 cities (currently), including Beijing, Shanghai, and Shenzhen, now covered, according to the report.