China’s digital renminbi (e-CNY) has seen remarkable growth, with cumulative transactions reaching 7 trillion yuan as of the end of June this year. This was revealed by Deputy Governor of the People’s Bank of China (PBOC), Lu Lei, during a press conference in Beijing on September 5.
According to Lu Lei, the digital RMB pilot program has been implemented in 17 provinces, autonomous regions, and municipalities across China. The program has been exploring applications in various sectors, including wholesale and retail, catering, culture and tourism, education, and healthcare. This has led to the development of a range of replicable and scalable application solutions that cover both online and offline channels.
The digital RMB has played a significant role in boosting consumer spending, promoting green transformation, and optimizing business environments. The digital renminbi has played a positive role in boosting consumption, promoting green transformation, and optimizing the business environment, Lu Lei said.
The Deputy Governor also highlighted that China is continuously enhancing the service level in the digital RMB field. This includes enriching the product system of the digital RMB, developing innovative products and functions such as barrier-free aging and smart contracts, and improving the acceptance environment to expand coverage and enhance convenience.
In addition, the digital RMB service system is being continuously improved to facilitate the use of digital RMB by overseas visitors to China.
Looking ahead, the PBOC will continue to prudently advance the research and application of digital RMB, consolidating the foundation for its development.
Lu Lei also mentioned the Cross-Border Experimental Project for Digital Currency, a multi-central bank digital currency bridge project led by the Hong Kong Innovation Center of the Bank for International Settlements. The project aims to explore solutions to the shortcomings of cross-border payments. It has now entered the minimum viable product (MVP) stage, and participating institutions in the jurisdictions of all participating parties can conduct real transactions according to relevant procedures.
Furthermore, the G20 has proposed an initiative to improve cross-border payments, and various international organizations have also conducted research on the applicability of central bank digital currencies in cross-border areas. Lu Lei expressed China’s willingness to participate actively and conduct joint research on improving cross-border payment arrangements under bilateral and multilateral cooperation frameworks, promoting the interconnection of international financial infrastructure.
The digital RMB’s rapid development and expansion demonstrate China’s commitment to embracing digital currency technology and leveraging it to enhance economic efficiency and facilitate cross-border transactions. As the digital RMB continues to evolve and expand, it is likely to play an increasingly significant role in the global financial landscape.
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