Authorities of the People’s Republic of China set key performance indicators (KPI) for the central bank digital currency (CBDC) for 2023. Officials demand to ensure e-CNY transaction volume growth and suggest using propaganda tools to achieve the result. 

Chinese Government Sets KPIs for Digital Yuan

Chinese authorities set ambitious goals for the e-CNY. Representatives of China’s ruling party established KPIs of 2 trillion CNY ($300 billion) for e-CNY transactions in Suzhou by the end of 2023. This was reported by Cointelegraph, citing JS China.

According to the municipality, the volume of digital yuan transactions in Suzhou reached 340 billion CNY ($50.5 billion) in 2022. Chinese authorities insist on increasing the figures by at least six times. The city’s municipality must use all available propaganda methods to achieve this goal. 

Representatives of the Communist Party also hope to expand the use of the CBDC for lending to small and medium-sized businesses in the region. For example, the e-CNY in Suzhou provided 18.7 billion CNY ($2.78 billion) in loans in 2022. Chinese officials push for this figure to increase at least tenfold by the end of the year, reaching 200 billion CNY ($30 billion).

According to the city’s renewal plan, local authorities in Suzhou must also ensure the development of at least 1,000 firms in the digital financial technology sector by 2025. These companies should specialize in AI, cloud computing, blockchain, and machine learning. There are currently 371 such specific companies registered in the region. 

The PRC authorities have ambitious plans not only for CBDC development, but also intend to achieve leadership in the VR market and blockchain development. China recently launched the country’s first regulated public platform for non-fungible tokens (NFT).

Author: Ana Bustos García
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