says digital yuan trial disappointing resulted in In a report citing a former head of research at the Central Bank of China. Bankers believe that the new form of national fiat money will not bring any benefits to banks and will need to expand beyond being used solely as a replacement for cash.
Ordinary people accustomed to cash and cards, Former PBOC Executive Notes
China’s central bank’s use of digital currency (CBDC) Low, very high,” said Xie Ping, former Director of Research at the People’s Bank of China (PBOC). Ping made this observation at a conference dedicated to digital finance.
“The cumulative circulation of digital yuan in his two years of trial is only 100 billion yuan ($14 billion),” he detailed, adding that financial news outlets Cited by Caixin and Reuters. In his view, the application of the digital yuan should be expanded.
“The results are not ideal,” he concluded at a forum hosted by Tsinghua University. “What needs to change is that the digital yuan will serve as a replacement for cash and only for consumption purposes,” he stressed.
Currently, the payment market structure formed by cash, bank cards, and third-party payment platforms meets the needs of daily consumption in China. “Common people are used to it and it’s hard to change,” he said.
China is at the forefront of his CBDC development race, promoting the digital yuan through many red envelope campaigns and offering e-CNY to stimulate its use and expand its geographic reach. Pilot projects to new cities and regions by:
The authorities are also trying to increase the use cases for the renminbi’s digital counterpart, with the latest examples including the introduction of digital renminbi payments in public transportation in Ningbo and Guangzhou. In September, the PBOC requested more of these use case scenarios, calling for new currencies and deeper integration with electronic payment providers.
According to Xie Ping, the digital renminbi business had no synergy and no commercial interest in the bank’s business, while third-party payment systems such as Alipay could be used for investment, insurance, and consumption. It offered more attractive features such as users. loan.
As such, former central bank officials have taken steps to promote the digital people, for example by allowing individuals to purchase financial products with state-backed coins and by connecting it to more traditional payment platforms. We believe that the original use can be expanded. Create new opportunities to use it for consumption.
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