The pilot program has already been expanded to cover a total of 23 cities across China, including the cities of Beijing, Shanghai, and Tianjin. No time frame for the expansion of the trial program has been announced thus far. UPDATE (September 22, 2022): Vice President of the People’s Bank of China announced on September 19 that the digital yuan trial program will gradually be expanded to the whole of Guangdong, Sichuan, Hebei, and Jiangsu – the provinces in which the first four trial cities are located. We explain what the e-CNY is, how to use the digital yuan app, and the possibility of widespread uptake of the digital currency. In addition, Tencent-owned WeChat announced it would begin rolling out the e-CNY as a payment option on its platform, further introducing the digital currency to over 1.2 billion users. Now available to users in 23 cities across China, the app will enable millions of users to use the e-CNY by signing up through a range of commercial banks. He said the e-CNY’s “acquiring environment” remains a work in progress and is a primary factor holding back a full-scale launch, along with issues related to completing the risk-management and regulatory frameworks.Ī McKinsey report in October pointed to e-CNY as an example of how official central-bank-issued digital currencies “have been met with only moderate adoption.” While the trials show that the e-CNY actually works, the McKinsey report said, they compare with more than two billion monthly active users reported by WeChat Pay and Alipay.SeptemPosted by China Briefing Written byĬhina has released the new digital yuan app for iOS and Android on domestic app stores. Speaking at a November conference, Mu Changchun, who runs the e-CNY project at the People’s Bank of China, appeared to acknowledge the demand challenge. The e-CNY wasn’t a payment option on sites run by Alibaba Group Holding Ltd., which in 11 days racked up sales of nearly $85 billion, or 8.5 times the amount of digital yuan transacted over 18 months of trials. The company said 100,000 customers used e-CNY in 240,000 orders but declined to say how much of the total $55 billion spent during the sales period it constituted it was likely a fractional portion. made it a payment option during the event as part of a plan to encourage adoption of digital wallets. Pointedly, China’s annual online shopping extravaganza in November, known as Singles Day, featured only limited promotion of e-CNY, a currency designed for the internet. Based on central-bank numbers, the average amount spent per transaction was under $1. Giveaways aren’t nationwide they have been run in particular cities on specific dates and so far have left out small towns and rural areas. “Primarily, e-CNY has been distributed in free-to-enter lottery-type promotions and through discount deals designed to encourage downloads of the central bank’s app and digital wallets. I’m sure a majority of participants in the payments ecosystem hope this remains true: There is also interest in how quickly consumers might adopt digital money, but given the poor consumer adoption reported here, perhaps the payment tools consumers use today are sufficient. The primary concern among world leaders is its potential impact in world trade. The world is anxiously watching China’s digital yuan to learn how quickly a Central Bank Digital Currency (CBDC) will be adopted.
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