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CBDC trial transaction crosses 3 million between April and August

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China begins Crypto-wallet testing

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China has finally disclosed the statistics around its Central Bank Digital Currency (CBDC) trial, which was held in three cities within the country. During the virtual SIBOS 2020 banking conference, the Deputy Governor of the People’s Bank of China, Fan Yi Fei, shared some details about the digital Yuan trials.

While presenting a speech on Monday at the virtual event, he mentioned that the trials witnessed over 3 million transactions between April and August. And the total value of 1.1 billion RMB (about $162 million) was made by the citizens of Shenzhen, Suzhou, and Xiong’an.

The Deputy Governor also revealed that the Central Bank of China opened 113,300 personal digital wallets and nearly 9,000 corporate wallets during the trial. This makes digital yuan the most widely used CBDC in the commercial space.

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He added that the digital yuan is applicable in over 6,700 types of use cases. They include bill payment, transportation, shopping and consumption, catering services, and others.

CBDC trial transactions

Plans for the CBDC program

While there is no release date for the payment system, CBDC will continue its trials to expand across different regions. Meanwhile, back in August, China’s Commerce Ministry already disclosed its plans to extend the trial session of the CBDC in Beijing, the Yangtze River Delta region, Hong Kong and Macau.

The bank also plans to test the digital yuan at the upcoming 2022 Winter Olympic Games. The Deputy Governor of the Bank further asserts that the digital currency will be a critical component of the future financial infrastructure in China.

He believes that the anticipated payment system will outperform already existing payment platforms in the Chinese market – WeChat Pay and Alipay. He concluded by saying:

“In cross-border payments, we could achieve interoperability and address the challenges (low costs, low risks, high efficiencies) by using digital fiat currency. We will collaborate with private sectors and adapt to long-term technology evolution continuously. We will also establish a fiat digital currency alliance that observes regulations across jurisdictions and complies with international standards, for instance, PFMI (Principles for Financial Market Infrastructure).”

However, general reactions around the CBDC have been mixed.

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