PBoC (The People’s Bank of China) including e-CNY, the country’s central bank digital currency, in an official report about circulating currency, signals China’s willingness to continue implementing the system.
According to a 2022 report published by the PBoC that was released on January 10, at the end of 2022, there was 10.47 trillion yuan in circulation, while the broad money supply was estimated to be 266.43 trillion yuan.
13.61 billion of this amount was e-CNY, and it represents 0.13% of the entire currency that’s currently in circulation. The seemingly tiny fraction of the entire sum is worth around $2 billion.
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Yet in 2020, the country has introduced and encouraged the use of newly-presented digital currency. The application of CBDC in China was introduced only in selected areas, and eventually, as the trials were conducted, and the necessary lessons were learned, China kept introducing the digital currency in new provinces.
Despite that, the usage of the digital yuan remains low. As of October, 2022, it was reported that despite being launched in 2020, the total processed transactions are worth only over $14 billion. And, contrastingly, with low CBDC usage, and the official crypto ban in place, a recent report revealed that there are over 1,400 blockchain firms operating in China.
