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Representatives staff a booth promoting the e-CNY, China’s digital currency, during the China International Fair for Trade in Services (CIFTIS) in Beijing on September 2, 2022. Photo: AP
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China digital currency: Beijing to expand e-CNY trials to four entire provinces including Guangdong

  • The People’s Bank of China (PBOC) will expand e-CNY trials to Guangdong, Hebei Jiangsu, and Sichuan provinces, an official said on Monday
  • The number of users, merchants and transactions is ‘steadily growing’, Fan Yifei, the bank’s deputy governor, said at a financial forum in Suzhou
China digital currency
Coco Feng
Coco Fengin Beijing
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China will expand trials of its e-CNY electronic currency from a limited number of cities and areas to the entirety of four provinces, including Guangdong, as the nation’s central bank seeks to give a big boost to the adoption of the sovereign digital currency.

In addition to Guangdong, the People’s Bank of China (PBOC) will expand the e-CNY trials to Jiangsu, Hebei and Sichuan provinces, Fan Yifei, the bank’s deputy governor, said at a financial forum in Suzhou city in Jiangsu on Monday.

China’s first batch of digital yuan tests, which began in 2020, took place in four cities: Shenzhen, Suzhou, Xiongan and Chengdu. Fan did not give a specific timetable but said the expansion will happen “at a proper time”.

Calling the e-CNY “an important infrastructure in the digital era”, Fan said the number of users, merchants and transactions is “steadily growing”, but he did not provide details. The latest disclosure indicated that there were 261 million unique users at the end of 2021, a number that had nearly doubled since October.
A visitor buys a cup of coffee with e-CNY at an exhibition of financial services during the 2022 China International Fair for Trade in Services (CIFTIS) in Beijing on September 4, 2022. Photo: Xinhua

China’s active roll-out of its sovereign digital currency has moved ahead of other major central banks like the US Federal Reserve and the Bank of Japan.

The digital yuan, officially known as the Digital Currency Electronic Payment, is being tested in more than 20 cities and regions. Most of the current trials were citywide, except for Hainan province.

The tests have generally involved giving cash rewards to consumers to spur usage and asking merchants to accept e-CNY payments. Use of the currency has also moved beyond retail to cover corporate loans and tax payments in certain cases.

China’s e-CNY offers chance to ‘reshape’ global payments, experts say

Earlier this year, the PBOC and the Hong Kong Monetary Authority began “technical testing” for cross-border use of the digital yuan. International collaboration has also accelerated between China’s central bank and its counterparts in Thailand and the United Arab Emirates. The nations are studying the use of digital currencies and blockchain technology in cross-border payments.

China has yet to announce a formal timetable for the nationwide launch of its digital fiat money.

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