The People’s Bank of China (PBOC) continues to expand the area of central bank digital currency (CBDC) circulation. The possibility of paying for goods using the digital yuan (e-CNY) will soon be available in 12 more areas of China.
The digital yuan pilot project will be extended to 23 districts in 15 provinces of the PRC. This was reported by the official news agency of the Chinese government Xinhua. A complete list of new areas of e-CNY circulation is not available. The only thing mentioned is the inclusion of Hong Kong and Chengdu in the testing area.
Zou Lan, director of the People’s Bank of China’s financial markets department, noted the success of the e-CNY rollout. According to the financier, the digital yuan is an invaluable tool in improving the quality of life, stimulating consumption and ensuring sustainable economic development.
The PBOC reported that as of May 31, 2022, the Chinese had spent 83 billion e-CNY (~$12.35 billion), 490 million CNY (~$73.2 million) of which was spent in just two months in the southeastern Chinese city of Guangzhou. Over 4.5 million Chinese merchants nationwide have already started accepting the CBDC, with a total of ~264 million transactions.
Zou Lan said that in the next phase, the People’s Bank of China plans to further increase the number of e-CNY circulation regions and expand the technological capabilities of the digital yuan.
Recall that in April this year, the PBOC expanded the e-CNY testing program to 11 cities with populations over 100 million, and China’s financial sector has recently begun actively integrating the CBDC as a means of payment into its processes.
