China is a forerunner when it comes to digital national currencies, yes central bank digital currency (CBDC). There has been a digital version of the renminbi, better known as yuan, for almost two years now.
Although the project riddled with teething problems, the digital currency now seems to be really gaining traction. Recently, the milestone of almost $ 250 billion in total transaction volume was tapped.
Digital currency China reaches milestone
The governor of the Bank of ChinaYi Gang, shared this achievement at a conference in Singapore. At the end of June, more than 1.8 trillion yuan had already been sent with China’s CBDC.
In addition, Gang reports that more than 950 million individual transactions have already taken place and 120 million wallets have been created. The value of an average transaction with the digital yuan works out to about $260.
Yet there is still a long way to go. The amount of digital yuan in circulation remains very low. According to the central bank governor, the total value of the digital yuan in circulation is only $2.3 billion. This represents a minuscule percentage, 0.16% to be exact, of all yuan in circulation in China and abroad.
The digital yuan is heavily promoted by the Chinese government. It is therefore not surprising to expect that the digital currency will continue to increase in use in the future. Especially if you also consider that the digital yuan has only just arrived. In that context, the recent milestone is quite an achievement.
Central bank “crypto” elsewhere in the world
China may be a forerunner in the field of CBDCs, but other countries in the world are also developing such a digital currency. Even the European Union plans to come up with a digital euro sooner or later, although it will probably take quite some time.
Recently was in it crypto news read that the EU had unveiled a bill for this digital euro. The plan is that it must be possible to pay everywhere in the EU with this digital variant of the euro.