China's Digital Yuan Initiative Makes Significant Strides, Accumulating a Transaction Volume Nearing $1 Trillion

China's digital yuan initiative is making significant strides, accumulating a transaction volume nearing $1 trillion, according to Lu Lei, Deputy Governor of the People's Bank of China (PBOC).

China's central bank digital currency (CBDC), known as the digital yuan or e-CNY, has processed a total transaction volume of nearly $1 trillion, a significant milestone in the country's CBDC initiative.

The latest figures were disclosed by Lu Lei, Deputy Governor of the People's Bank of China (PBOC), during a recent press conference hosted by China's State Council Information Office.

China began researching and developing its CBDC over a decade ago and has conducted extensive pilot programs in 17 regions for four years. As of June, transactions through the digital yuan reached 7 trillion yuan.

Key Milestones in China's Digital Yuan Development

During the press conference, Deputy Governor Lu highlighted the success of the digital RMB's pilot programs, which have covered a broad range of sectors, including wholesale, retail, education, tourism, and medical care. These trials have yielded scalable and replicable solutions for digital payments.

The PBOC has adopted a "two-tier operating structure" for the digital yuan, combining central bank oversight with operational institutions. This approach ensures financial stability while fostering technological advancements.

Impact on Financial Inclusion and Payment Efficiency

The Deputy Governor emphasized the digital RMB's positive impact on financial inclusivity, boosting domestic consumption, and improving payment efficiency. He noted that the digital yuan supports green initiatives and contributes to a more optimized business environment.

International Cooperation on Cross-Border Digital Currency

Besides its domestic progress, China is collaborating with central banks from Hong Kong, Thailand, and the UAE on a cross-border digital currency project led by the Bank for International Settlements (BIS).

This initiative, which began in 2021, aims to streamline global payment systems and reduce inefficiencies. Real transactions between participating nations have already commenced.

The above is the detailed content of China's Digital Yuan Initiative Makes Significant Strides, Accumulating a Transaction Volume Nearing $1 Trillion. For more information, please follow other related articles on the PHP Chinese website!