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China to Expand Trials of e-CNY by Bringing it to Over 360M New Users
The People’s Bank of China is planning to expand trials of e-CNY in its most populous provinces “at a proper time.”
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Speaking on Monday, September 19th, Fan Yifei, the deputy governor of The People’s Bank of China (PBOC) said that they are planning to expand the trials of the digital yuan. The expansion of the trial is expected to take place in some of China’s most populous provinces.
China to Expand e-CNY Trials From City to Province Levels
China has been working on its national digital currency for years with the first major trials taking place back in 2020. So far, the currency has seen 139 million users in 2021, and reportedly more than 260 million in 2022 despite being available only in major cities. Now PBOC is planning to include entire provinces in the program.
While there are no specific dates yet, Yifei announced that the provinces included in the trials are Guangdong, Jiangsu, Hebei, and Sichuan. This move can potentially bring the currency to a total of nearly half a billion users as more than 360 million people live in these provinces.
So far, the trials have been limited to four cities: Shenzhen, Suzhou, Xiongan, and Chengdu. The expansion of the trials will take the e-CNY up an administrative level as these four cities are within the provinces new tests are to take place.
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Digital Currencies Remain Popular in China Despite the Crackdowns
While Vietnam remains the world’s number 1 when it comes to crypto adoption, China isn’t lagging too far behind. The country’s spot in the top 10 is a bit surprising, despite the massive population, due to the CCP’s crackdown on Bitcoin last year.
Parallel with its attempt to suppress more decentralized cryptos, the Chinese government has been hard at work when it comes to developing the national digital yuan. One of the major methods it is employing in the promotion of the currency is airdropping e-CNY to users, often in order to stimulate the economy amidst the still-present lockdowns.
China has also been actively encouraging businesses to start accepting the digital currency and has initiated its use in business-to-business transactions. Recently, the country also expanded its e-CNY loan program.
Do you think China will be the first major economy to fully roll out its national digital currency? Let us know in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
