China's central bank to expand the deployment of e-CNY

More than 4,567,000 businesses nationwide now accept payments made with the e-CNY

By Shashank Bhardwaj

Image: Shutterstock

Lan Zou, chief of monetary policy at the People's Bank of China (PBoC), made an announcement that China will increase the number of digital yuan (e-CNY) test sites from 11 to 23, according to the state-run Xinhua News Agency. The sites will be spread across 15 out of 3 autonomous areas and provinces under China. The CBDC, or e-CNY, was created by the PBoC, China's central bank.

The goal of China's e-CNY system development is to provide a digital yuan that satisfies the public's need for money in the era of the digital economy. Parallel to China's digital economic advancements, the e-CNY system will assist the growth of retail payment infrastructures and enhance payment system efficiency.

At the press conference on Wednesday, Zou lauded the recent e-CNY rollout's accomplishments, saying, "e-CNY trials during the first half of 2022, such as acting as a means of payment during the Beijing Olympics, were spectacularly successful. The e-CNY has demonstrated to be an invaluable tool in improving quality of life, stimulating consumption, growing internal demand, and ensuring steady economic development through its functions such as smart contract utility."

According to the most recent statistics update, as of May 31, Chinese consumers had spent 264 million transactions, or $12.35 billion, or 83 billion CNY. Over 4,567,000 businesses nationwide have started taking the CBDC. According to Zou, the PBoC intends to advance its technological capabilities and expand the number of e-CNY test sites in the coming stages.

Provincial and municipal officials routinely collaborated with China's digital companies to introduce e-CNY airdrops during the country's tight coronavirus lockdowns. To boost consumer spending, users who got digital yuan could use the "gift" at particular platforms and in-app merchant terminals. The e-CNY can be used to pay various bills and taxes at different municipalities and to purchase consumer products.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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