China's digital Yuan is little used, says former central bank official - Finance
China's digital Yuan is little used, says former central bank official - Finance
Attempts with the digital Yuan have led to disappointing results, according to a report that cited the former research manager of the Chinese central bank. The new form of the national Fiat has brought the banks no advantages and should go beyond the mere use as a cash replacement, the banker believes.
simple people who are used to cash and cards, ex-PBOC Executive Notes
Use of the digital currency of the Chinese Central Bank ( CBDC ) was according to Xie Ping, former general director for research at People’s Bank of China (PBOC), "Low, highly inactive". Ping made this observation at a conference on the subject of digital finances.
"The cumulative edition of the digital Yuan in the two years of the process was only 100 billion yuan" ($ 14 billion), he carried out in detail, quoted by the financial news agency Caixin and Reuters. In his view, the application of the digital yuan must be expanded.
"The results are not ideal," closed Xie during the forum organized by the Tsinghua University. He emphasized that "what has to change is the digital Yuan, who only acts as a replacement for cash and only for consumption".
The payment market structure formed by cash, bank cards and payment platforms by third -party providers is currently satisfying the needs of daily consumption in China. "The simple people are used to it and it is difficult to change it," he noted.
china was at the top of the race for the development of CBDCs with efforts to promote the digital yuan by a number of campaigns with red envelopes, give away his use, and extend the geographical reach of the pilot project to new cities and regions.
The authorities have also tried to expand the applications for the digital version of the Renminbi, with the latest examples, including the Introduction of digital Yuan payments in the public transport systems of Ningbo and Guangzhou. In September, the PBOC called for further of these application scenarios and pushed for a deeper integration of its new currency E-payment providers.
According to Xie Ping, the digital Yuan business had no synergy effect and no commercial benefits for the business of banks, while payment systems from third-party providers such as Alipay offer a number of attractive functions such as investments, insurance and consumer loans.
For this reason, the ex-central bank official believes that the use of the digital Yuan can be expanded by being able to buy individuals with state support, and by combining more traditional payment platforms to create new opportunities for consumption.
Do you believe that the use of the digital Yuan will increase with an increase in the applications offered by the Chinese government? Share your thoughts on this topic in the comment area below.
Bedy verification : Shutterstock, Pixabay, Wikicommons
Kommentare (0)