19-7-2023 (BEIJING) Transactions using China’s digital yuan reached 1.8 trillion yuan ($249.33 billion) at the end of June, according to the country’s central bank governor Yi Gang. This marked a significant increase from over 100 billion yuan as of August last year and established China as a leader among countries developing their own central bank digital currencies (CBDCs). The e-CNY, as the digital yuan is called, has mainly been used for domestic retail payments.
Speaking at a lecture in Singapore, Yi also revealed that China’s digital currency in circulation had reached 16.5 billion yuan by the end of June, with total e-CNY transactions reaching 950 million and 120 million wallets being opened. Despite this, e-CNY in circulation accounted for only 0.16% of China’s M0 money supply, or cash in circulation, according to Yi.
Yi emphasized that the small balance of e-CNY was more efficient due to the high velocity of transactions supported. Last year, Chinese state-owned banks participated in a trial of cross-border transactions using digital currencies developed by the Bank of International Settlements.
Yi, who has been widely expected to step down as central bank governor, declined to comment on the matter directly. Meanwhile, the Communist Party named PBOC Deputy Governor Pan Gongsheng as PBOC party chief on July 1, putting him in a position to succeed Yi as central bank governor, a position nominated by the government.
