Dr. Yi Gang talks about the perspective of China on the subject of CBDC: only 0.16% of the Renminbi money amount in digital form

Dr. Yi Gang talks about the perspective of China on the subject of CBDC: only 0.16% of the Renminbi money amount in digital form

mas is proud of Dr. Yi Gang, the President of the China Society for Finance and Banking, to have won as a speaker for the MAS-Lecture 2023. In his speech, Dr. Yi on the subject of "CBDC from China's perspective". This information was announced on the official Twitter account of MAS (@MAS_SG) on July 19, 2023.

According to a Reuters report of July 19, Dr. Yi that around $ 2.3 billion or 16.5 billion electronic Renminbi (E-CNY) were in circulation at the end of June, which is only 0.16 % of China's money supply. Although the introduction of the digital Yuan is still minimal compared to the population of 1.4 billion inhabitants in China, e-Cny has so far been used mainly for domestic mass payments. However, there were also some attempts in Hong Kong.

On July 18, South China Morning Post (SCMP) reported that the Bank of China Hong Kong started testing a further cross -border payment system for Bank of China customers in selected retail stores in Hong Kong. This attempt was made to further promote the cross-border applications of E-Cny and is already the third cross-border attempt by the digital Yuans in Hong Kong.

In January, the Chinese central bank expanded the functionality of the digital Yuan by integrating the Smart Contract functionality. As a result, the applications of the digital Yuans could be expanded.

Although the $ 250 billion of e-CNY transactions represent an increase of over 70 % compared to the number of August 2022, this amount is still far below the value that is processed by some of the largest public blockchains in the world. According to various reports, 8.2 trillion $ 8.2 trillion were processed in 2022.

These are some of the current developments related to the digital Yuan from China's perspective. The introduction of digital Yuans and the associated applications and technologies are still observed and examined in order to understand the effects on the global financial system and international trade. It remains to be seen how this area will develop in the coming years.