Digital Yuan Expansion in China – Threat to Bitcoin and the Dollar?

E-yuan in pole position – If the China is very discreet with regard to its communications with foreign countries, on site, its central bank digital currency (MNBC) is making great strides. Indeed, the digital yuan (e-CNY) tests will now disembark him from million merchants on Chinese soil.

E-yuan: 23 new test areas in China

While the United States and the European Union are still evaluating the possibility of starting to seriously consider issuing a central bank digital currency, for its part, the China field test its MNBC prototype since the end of 2020.

And his tests will continue to scale up. According to an official communication from Zou Landirector of the Monetary Policy Department of the People’s Bank of China (PBoC), the experimental areas of the digital yuan will be considerably widened.

After 11 first test areas already requested, it will now be 23 regions in total (including 12 new ones) which will welcome the e-yuan, distributed in 15 provinces and cities Chinese.

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More than 4.5 million merchants with the digital yuan

The e-CNY trials during the first half of 2022, in particular as means of payment during the Olympic Games of Beijing, would have known “a spectacular success”according to the central banker.

A truly “technology business card”, according to Zou Lan. In any case, enough to motivate to extend its use obviously. It must be said that the raw data speaks for itself. 264 million transactions in digital yuan had already been made as of May 31, 2022… with a total of 83 billion of e-CNY traded (about 12.3 billion dollars).

With the new areas open, the PBoC representative announces that 4,567,000 tradespeople Chinese will now offer the option of payment in e-yuan to their customers.

The People’s Bank of China also promises to continue to develop experiments of its MNBC in a way “regular and orderly”. It promises !

The advantage (in quotation marks) of a one-party regime means that China don’t waste a second when the Politburo decides on a direction. If in the European Union things drag on, the Bank of France nevertheless shows herself, very eager to see a digital euro.

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