The adoption rate is increasing steadily, with users seeing real-life benefits. But at what cost?Ĭhina’s digital iteration of the digital yuan, or e-CNY, showcased some potential to make a difference in the real world. From Europe to Russia, all have taken significant steps to hasten the process. Implementation continues to develop in 2023. But there are still concerns over the concept of financial freedom. The Federal Reserve and a group of private banking firms launched a 12-week digital dollar pilot project. Adoption of the e-CNY is on the rise in China More than 90% of central banks have already begun research on CBDCs. The increase in traction is directly related to the digitalization of the world economy and a higher demand for digital payments. A few nations, such as China are leading the charge, whereas others giants, such as the U.S., Russia, Europe, and the U.K. There is a buzz surrounding CBDCs and their implementation. In contrast, WeChat and its sister app QQ had 1.3 billion and 574 monthly active users.As Lunar New Year approaches, China is making major inroads with the adoption of its central bank digital currency (CBDC), or digital yuan, from smart contract features to offline payments. Beijing Winter Olympic Village is scheduled to open on January 27, and the e-CNY will be piloted in the relevant scenes of the Beijing Winter Olympics. After the early multi-stage controllable pilot, Tencent began to provide users with e-CNY services. However, digital Yuan red packets can share through Alipay, WeChat and QQ, another famous social platform under Tencent.Īccording to Tencent’s financial report, Alipay had more than 1 billion annual users in the 12 months till August 17, 2020. Recently, e-CNY APP was upgraded, and the e-CNY Wallet on WeBank (WeChat Pay) was launched. On the other hand, Alipay and WeChat accept the digital Yuan, allowing them to leverage these apps’ much larger user base. If we do the analysis, from the start of e-CNY in December 2019 till the end of August, total transactions, including Yuan, rose 14% to reach 100 billion Yuan. The capital of Yunnan province, and Jinan, the capital of Shandong province, all became digital Yuan, accepting cities last week. The capitals of Guangdong, Jiangsu, Hebei and Sichuan provinces, as well as Kunming. Moreover, digital currency is still in the trial phase and has no scheduled date for a full launch. The payment features built into apps provided by tech companies and conventional banks are just another type of online payment.įurthermore, the e-CNY app is only currently usable in about two cities and regions, including Beijing and Shenzhen. The people’s bank of China has repeatedly claimed that the digital Yuan is not intended to replace Alipay and WeChat pay but for ‘notes and coins’.īesides, the general public is more concerned about e-CNY. On the other hand, the e-CNY app has been available for download by the general public since January. As electronic payments have become more prevalent in the country, sending small cash amounts has become a social phenomenon. The idea came when the Chinese traditionally gave out red envelopes filled with cash to family and friends as a sign of good wishes. The latest e-CNYs update enables users to send each other digital Yuan-filled red packets known as hongbao in mainland China. A component made famous over the years by the nation’s two most popular payment apps, Alipay and WeChat. Though, the e-CNY app has been available for download for the public for around a year, users still need help to use it.Ĭhina’s official digital currency wallet app has established a new feature, the red packet. The process is known as hongbao in mainland China. The e-CNY app enables users to send each other a digital red packet filled with Yuan.
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