China moves $9.7 billion in digital yuan, up 80% in three months
The number of users of the Chinese digital currency, the digital Yuan, also known as e-CNY, has increased significantly over the past four months, from 24 million wallets to 140 million. According to the People's Bank of China (PBOC or People's Bank of China , in English), the new currency has already been used to move US$ 9.7 billion (R$ 54.5 billion at the current price).
- Tests with the Chinese digital currency have moved more than US$ 5.3 billion
- China performs first futures market operation with its own digital currency
- Cryptocurrency brokerages due out of China by the end of the year
The plan to implement this payment modality was proposed in 2017, but the first tests started only last year. Unlike other cryptocurrencies such as Bitcoin and Ethereum , for example, e-CNY is regulated by the government and is issued directly by the country's central bank.
With the intention of spreading the use of the new currency and replacing the money in circulation in the long term, Beijing has encouraged the use of the digital yuan through raffles, in which it presents values to the population virtually.
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The digital yuan can be used for both physical and online purchases at stores that have already joined the category. According to Mu Changchun, head of the PBOC's Digital Currency Institute, currently 1.55 million merchants across China are accepting payments via e-CNY, including catering , transportation, retail and government services.
For the Chinese government, with the new currency it will be possible to balance the privacy that the population wants with all the existing regulations against money laundering and other financial crimes. Changchun said digital wallets would collect less transaction data compared to traditional online payment services.
On the other hand, the plans to popularize the e-CNY also led to greater repression by the authorities in relation to cryptocurrencies in the country, in the second quarter of this year. In the view of some analysts, the ban on trading bitcoin and other cryptocurrencies in the world's second-largest economy was motivated, in part, by an interest in avoiding possible competition between the digital yuan and other decentralized digital currencies.
Read the article on Canaltech .
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Read more: https://coinrevolution.com/china-moves-9-7-billion-in-digital-yuan-up-80-in-three-months/
Text source: CoinRevolution
