China's continuous central bank digital currency (CBDC) issuance has successfully pushed China's digital yuan transactions past 100 billion yuan ($13.9 billion).
According to the People's Bank of China (PBOC), 360 million transactions have been made in 15 provinces and urban centers, while 5.6 million merchants have already started accepting payments using CBDC.
Although China is still in its early stages, the country is working to develop a CBDC following transactions using e-CNY increasing from 87.6 billion yuan by the end of 2021.
To combat the pandemic and promote low-carbon transportation, the focal locations are offering 30 rounds of e-CNY subsidies and free digital money in Shanghai worth $4.5 million.
Meanwhile, the central bank is also participating in the multiple digital Central Bank (mCBDC) developed by the Bank of International Settlements to connect Hong Kong's local digital payment system.
It is also understood that the implementation of e-CNY is currently used for domestic retail payments, but it will be promoted to corporate and personal businesses to encourage companies to use it on a large scale.
In the meantime, China is determined to link the e-CNY system with the traditional digital payment system operated by Alibaba Group Alipay and Tencent Holding WeChat Pay to make it easier for consumers and merchants.
