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China’s central bank digital currency, the digital yuan, has achieved a significant milestone, surpassing $250 billion in transactions within just one-and-a-half years since its launch.
Governor Yi Gang of the People’s Bank of China shared this impressive achievement during a conference organized by the Monetary Authority of Singapore. According to Reuters, Yi Gang reported that the digital yuan has facilitated over 950 million transactions, involving 120 million digital wallets.
During the conference, Yi Gang highlighted the efficiency and high velocity of the digital yuan’s usage despite its relatively small balance, amounting to only two-tenths of 1% of M0 (the monetary base). This efficiency allows the digital currency to support a substantial number of transactions effectively.
The Chinese government has been making steady progress in promoting the adoption of the digital yuan nationwide. All major banks and popular digital wallets like Alipay and WeChat are already onboarded, ensuring widespread accessibility to the digital currency.
Looking ahead, the next phase of the digital yuan’s implementation will include salary payments for public sector employees, further integrating the digital currency into everyday financial activities. Additionally, cross-border payment trials with neighboring countries will also be initiated, aiming to explore the potential benefits of using the digital yuan for international transactions.
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