The new wallet of crypto assets released by the Chinese government has reportedly become one of the most downloaded apps in the country a few days after it was launched. The use and integration with other applications is a factor in the increasing use of digital yuan payments.
In the past week, the government has offered and provided a digital wallet (e-CNY) for download. Today, the number of downloads of the app surpasses Wechat and it became the most popular app on Apple’s iOS based on a South China Morning Post report. As of last Monday, it has become the second most downloaded financial app in the Xiaomi app store.
The e-CNY app is widely available for download but currently it can only be used in certain areas. The People's Bank of China's Digital Currency Research Institute (PBOC), which is the developer of the software, has collaborated with authorities in 10 pilot cities including Shanghai, Shenzhen, Xiongan, Chengdu, Suzhou and Beijing.
The launch of the app is part of efforts to promote China’s central bank (CBDC) crypto assets ahead of the Lunar New Year which begins on February 1st. Where it is the right time to give ang pow. In addition, visitors to the 2022 Beijing Winter Olympics will be able to use e-CNY without having to open a local bank account.
Digital yuan can be spent through other payment apps such as Alipay and Wechat Pay, which account for 90% of China’s mobile payments market. CBDC is also available in applications from seven Chinese banks namely the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Construction Bank of China, the Bank of China, the Communication Bank, the Postal Savings Bank of China and the Merchant Bank of China.
According to the report, the integration of the digital yuan has driven an increase in the number of transactions where data shows the value of transactions increased by more than 64% over the week before the app launch.
Market watchers believe that Yuan Digital is the most advanced CBDC in the world, leading similar projects in the U.S., EU and Russia. An official at the PBOC revealed in November that CBDC’s crypto assets had been used in transactions worth nearly $ 10 billion. As of October, about 140 million Chinese residents have opened digital yuan accounts.
This carries an indication that with China’s committed attitude towards the CBDC it will encourage other countries to further step up their efforts in the CBDC project so as not to be left behind.
