China Digital Currency Pilot Testing Completed 1.1 Billion Yuan Transactions
E-Yuan Would Potentially Be Used Globally For Rapid International Transactions Across Borders
Across some of the major cities in China, including Xiongan and Shenzhen, a continuing pilot program is being run by the People’s Bank of China (PBOC) to test out the newly made China digital currency, which has already made more than 3.13 million transactions across the country.
According to the deputy governor of the PBOC, the amount of China digital currency that has been transacted is 1.1 billion Yuan, which is equivalent to $162 million. The further pilot training program will be tested out during the Beijing Winter Olympics scheduled to be conducted in the year 2022.
E-Yuan to be established for public consumption
The ongoing pilot agenda for the China digital currency Yuan has made a positive impact and escalating progress, as more than 6,700 users have made several transactions using the facility of China digital currency till the end of August this year.
The basic usage of China digital currency was observed to pay utility bills and transport payment for governmental service vehicles. People’s Bank of China believes that in the upcoming future, China digital currency would play an important key factor in the financial infrastructure.
The China digital currency, also known as e-Yuan, is able to make money transactions using multiple methods, which include tap-and-go transactions, facial recognition, and barcodes. Since the pilot program for e-Yuan, more than 8,800 corporate wallets and around 113,300 personal wallets have been opened up to easy and fast transactions.
In the month of May this year, amid the coronavirus pandemic, the PBOC has announced that they would be able to ready the China digital currency before the initiation of the Winter Olympics 2022. No official name has been allotted yet to the China digital currency, but it is also known as its shorthand DCEP or Digital Currency Electronic Payment.
The e-Yuan will also share similar features with other cryptocurrencies like Facebook’s Libra and Bitcoin. The aim of making China digital currency is to completely replace the circulation of cash across the country.
The China digital currency pilot program has been initiated to test out first in just four major cities of China, which includes Xiongan New Area, Chengdu, Suzhou, and Shenzhen. To further promote and test run this project, the government of China has started paying their civil servants located in the cities of Suzhou and Xiangcheng half of their public transport subsidy in the form of e-Yuan.
E-Yuan challenges Bitcoin
Since the year 2017, the Chinese government has halted the use of cryptocurrency across the country, including the dollar Bitcoin, which was done in compliance to limit and prevent money laundering and fraud. According to the experts, the long-standing plans of China regarding their new cryptocurrency might generate concerns regarding a new warning against the United States’ financial domination across the world.
The China digital currency could possibly allow countries like Iran to easily evade the sanctions made by the United States or to money large amounts of money without being detected by the US. In the upcoming era of advanced technologies, one day, it would be made possible through digital currency to transfer a massive amount of money across international borders without going through the hassle of a dollar-based international payment system.
The e-Yuan could possibly be encouraged to use in other countries globally due to rapid transactions and cash-free payments, which could possibly lead towards people located overseas to use the Chinese currency and technology.
According to the former Treasury Secretary of the United States Henry Paulson, that even if the China digital currency became widely accepted across the globe, it would not damage the already made reputation of the US dollar, as most people worldwide trust the validity of the dollar and oil and multiple other merchandises are still priced in the US dollar across the world.