China’s Digital Yuan Transaction Volume Reaches $250 Billion
As the adoption and use cases of China’s central bank digital currency continue to expand, the digital yuan has facilitated transactions worth nearly $250 billion, amounting to 1.8 trillion yuan, during its one-and-a-half-year pilot period, according to the People’s Bank of China governor Yi Gang.
Significant Growth in Digital Yuan Transactions
Since the digital yuan’s initial rollout in January 2022, approximately 950 million transactions have been conducted through roughly 120 million wallets, leading to an average transaction amount of about $260.
Digital Yuan’s Current Circulation
At the end of June, the total value of digital yuan in circulation reached approximately $2.3 billion, equivalent to 16.5 billion digital yuan, which accounts for only 0.16% of China’s monetary supply, as reported by Reuters on July 19.
Minimal Adoption Relative to Population
Despite the significant transaction volume, the adoption of digital yuan remains minimal compared to China’s massive population of 1.4 billion. Currently, the digital yuan is primarily being utilized for domestic retail payments, with only a few trials being conducted in Hong Kong.
Cross-Border Payment Trials in Hong Kong
The Bank of China Hong Kong (BOCHK) has taken steps to promote cross-border applications of digital yuan by initiating a trial at select retail stores in Hong Kong. This marks the third cross-border trial of the CBDC in the region, as reported by the South China Morning Post on July 18.
Previous Digital Yuan Trials
In a prior trial, BOCHK encouraged customers to set up a BOC e-CNY wallet, receiving $14 (100 yuan) to be used at the Hong Kong supermarket chain U Select.
Smart Contract Integration
In January, the central bank integrated smart contract functionality into the digital yuan, broadening its range of use cases and potential applications.
Continuous Growth
The reported $250 billion in digital yuan transactions represents a remarkable 70% increase since August 2022. However, it still lags significantly behind the value processed by some of the world’s largest public blockchains.
Comparison with Bitcoin
For instance, Bitcoin (BTC) processed approximately $8.2 trillion in transactions during 2022, according to various reports. Despite its significant growth, the digital yuan’s transaction volume is still relatively small in comparison.
Ecosystem
Research
News Network
About