• Chinese cities are promoting the Central Bank Digital Currency (e-CNY) by distributing $26.6 million in digital yuan and providing subsidies to local businesses.
• The private sector is also helping promote the CBDC as an easier payment method, with 100 million e-CNY worth about $14.7 million being issued for the catering services industry.
• Since its initial launch two years ago, e-CNY transactions have crossed the $100 billion mark as China seeks to implement a seamless and intuitive user experience for its native app.
A recent report from Global Times China reveals that Chinese cities are participating in a campaign to promote their Central Bank Digital Currency (e-CNY). This initiative involves distributing digital yuan across the country, while certain local governments provide subsidies to help stimulate recovery in the catering services industry. Additionally, private commercial sectors are doing their part to promote the CBDC as a more convenient payment method.
Distribution of e-CNY
As part of this campaign, approximately $26.6 million worth of e-CNY was distributed among various cities in China during the holiday season for Spring Festival, including Jinan in Shandong Province and Lianyungang in Jiangsu Province. Meanwhile, Shenzhen in Guangdong Province offered subsidies to local businesses amounting up to 100 million e-CNY (approximately $14.7 million). This has resulted in increased promotion of CBDCs as viable payment options that provide citizens with financial mobility and convenience.
Progress of e-CNY
China launched its CBDC initiative back in 2021, with Android and iOS builds being made available by PBOC (People’s Bank of China) for mass use since then. Two years later, cumulative transactions using digital yuan have crossed the 100 billion yuan ($14 billion) threshold nationwide – signifying an increasing rate of adoption amongst users who prefer ease of use over other forms of payments systems like cash or credit cards.
Government Regulations on Cryptocurrencies
Despite these developments pertaining to its own CBDCs, China has implemented a ban on crypto trading and decentralized platforms within its jurisdiction due to concerns over regulatory compliance issues associated with cryptocurrencies and digital assets. As such, it remains uncertain whether or not this momentum can be sustained over time without any further interventions by government authorities or policy shapers regarding cryptocurrency usage within China’s borders.
In conclusion, although there has been significant progress made towards increasing adoption rates for e-CNY so far – given that it has surpassed 100 billion yuan worth of transactions – it is imperative that a seamless and intuitive user experience is provided via its native app if wider scale adoption is desired by Chinese authorities moving forward into 2021 and beyond..