Shanghai and Suzhou are pushing forward with efforts to increase the adoption of the digital yuan as China seeks to bolster enthusiasm for its Central Bank Digital Currency (CBDC).
The People’s Bank of China (PBoC) recently stated that transactions using the digital yuan have amounted to nearly $250 billion nationwide so far.
However, it’s been observed that this figure only represents a minor portion of China’s vast economy.
🪙 “China’s e-CNY, its central bank digital currency, has seen transactions amounting to $250 billion in the 18 months since its inception. Yet, this is a mere 0.16% of the entire monetary circulation in the country. Presently, e-CNY is predominantly used for local retail payments and sees limited…”
— Vladimir Kardapoltsev (VK) (@VladimirKard) July 20, 2023.
Some of China’s largest and most affluent cities are exploring strategies to boost the adoption of the digital currency among their citizens.
According to Shanghai Securities News, the Suzhou Municipal Bureau of Commerce recently held a meeting with its dedicated Digital Yuan Promotion Committee and representatives from eight leading banks.
During the meeting, attendees reviewed the advancements made by Suzhou institutions in e-CNY adoption and discussed plans for its further adoption in upcoming phases.
A consensus was reached on the importance of amplifying awareness, intensifying promotional efforts, and developing more practical use-cases for the digital currency.
Additionally, there was a mutual understanding of the necessity to refine the approval process for merchants eager to integrate the digital yuan into their operations.
The shift might mean pivoting from an emphasis on the retail segment to a stronger focus on the wholesale and B2B sectors.
Participants highlighted the urgency to expedite the approval process for enterprises that engage in “high-frequency” and “large-volume” transactions.
Furthermore, they emphasized that enhanced “organization, coordination, and communication” could significantly propel the pilot project’s progress.
China’s Shanghai & Suzhou Want to Boost CBDC Adoption
China News has also highlighted that the National Development and Reform Commission (NDRC) is keen on assisting the PBoC, Shanghai, and Suzhou in amplifying digital yuan adoption.
Answering to the State Council, one of China’s highest governmental bodies, the NDRC plays a pivotal role in macroeconomic planning on a national scale.
Recently, the commission unveiled a series of policies that explicitly endorse the joint efforts of Shanghai and Suzhou to launch digital yuan pilot projects.
These latest NDRC directives emphasize the establishment of novel adoption scenarios within these cities and promote solutions that ensure seamless interoperability.
In parallel, various regional Chinese banks are also making strides to bolster the adoption of the digital currency.
Over in Huai’an, located in Jiangsu Province, the local Bank of Jiangsu branch hosted several digital yuan promotional activities on August 16. These included a “night market” event and a fun run.
According to JSChina, bank employees guided participants on utilizing the e-CNY and educated them about identifying financial scams.
Additionally, the city of Tianjin announced earlier this week that since becoming a part of the pilot zone in April 2022, they have handled digital yuan transactions amounting to $1.76 billion.