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Although the Asian country is still in the early stages of launching its pilot program related to the introduction of its digital currency, the use of the crypto yuan has increased significantly in recent months, said the Governor of the People’s Bank of China, Yi Gang. .
To date, the digital yuan has been used in 4 million transactions valued at 2 billion yuan (about $ 300 million) during testing currently underway in four Chinese cities: Shenzhen, Suzhou, Xiong’an and Chengdu.
By comparison, 3.3 million transactions worth 1.1 billion yuan ($ 164 million) had been recorded in China at the end of August, according to statistics compiled by the central bank. This represents an increase of 21% and 82%, respectively.
During its pilot program, the Chinese central bank found more than 12,000 new cases for using the digital yuan. Furthermore, Yi Gang noted that the experiment is progressing easily so far.
With this project, China seeks to accelerate the transition from the world’s second largest economy to a cashless society. To achieve this, Beijing plans to increase the number of consumers who pay for its products with e-wallets.
The volume of all digital payments made in China rise to 412 trillion yuan ($ 61.6 trillion) by 2025. That’s more than double the total of 201 trillion yuan ($ 30.1 trillion) in 2019, analysts calculate. iResearch consultancy.
The digital yuan could increase the People’s Bank of China’s ability to monitor economic activity in real time, as more and more transactions take place in the digital space in most of the world’s economies.
In addition to testing the digital yuan in four cities in China, the Asian country plans to test it during the Winter Olympics to be held in Beijing in 2022.
In October, China’s central bank released a bill that it once approved it would guarantee a legal status to any electronic payment made in digital currency (DCEP), an abbreviation that the country’s main regulator used to refer to the yuan.
In the near future, the People’s Bank of China plans to cooperate with other financial regulators in order to establish a legal framework for digital currencies. All over the worldYi Gang reported during a panel held on November 2.
“I would like to work with the Bank for International Settlements, the Financial Stability Board and international central bankers to discuss a legal framework, [fomentando] transparency and how to safeguard [el desarrollo] of digital currencies, “the Chinese official said in local media.
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