China’s digital yuan initiative has progressed significantly, backed by more than a decade of research and four years of pilot testing, according to Lu Lei, deputy governor of the People’s Bank of China (PBOC). Trials for China’s central bank digital currency (CBDC) have been conducted in 17 different regions, accumulating a total transaction value of 7 trillion yuan (nearly $1 trillion). In addition, China is collaborating with several countries on a cross-border digital currency project, aimed at improving the global payment system.

Milestones of China's Digital Yuan and International Cooperation

Last week, the State Council Information Office of China held a series of press conferences focusing on the theme of “Promoting High-Quality Development.” Lu Lei, Deputy Governor of China’s central bank, the People’s Bank of China (PBOC), participated and answered questions related to the progress of the digital yuan development.

“At present, the digital yuan has been piloted in 17 provinces (autonomous regions and municipalities), and continues to be deployed in the fields of wholesale and retail, catering, culture and tourism, education and medical care, forming a number of online and offline application solutions that can be copied and popularized,” the official detailed, according to a Google translation. He added:

As of the end of June this year, the total transaction amount of digital yuan had reached 7 trillion yuan [nearly 1 trillion dollars].

Mr. Lu emphasized the role of the digital yuan in improving financial inclusion and payment efficiency, stating: “The digital yuan has played a positive role in promoting people's consumption, promoting green transformation, and optimizing the business environment.”

The deputy governor stressed that 10 years of research have led to the initial success of the digital RMB, verified through extensive pilot projects. According to him, China has developed a “two-tier operational structure” for the digital RMB, combining central bank supervision with operational institutions.

He emphasized:

After more than 6 years of research and development and more than 4 years of pilot projects, the feasibility and reliability of digital RMB in theory, business and technology have been preliminarily verified, and we are also trying to make it more compatible with the digital economy. Overall, the progress is going smoothly.

In addition, China's central bank is actively involved in a cross-border digital currency project involving central banks from Hong Kong, Thailand and the UAE. The project, led by the Bank for International Settlements, aims to address inefficiencies in cross-border payments and is currently at the minimum viable product stage.

“The People’s Bank of China is willing to actively participate and jointly explore the improvement of cross-border payment arrangements,” Lu noted. The project has already enabled real-world transactions between participating jurisdictions, highlighting the potential for future international cooperation.

What do you think about China’s progress with the digital yuan and its role in global cross-border payments? Let us know in the comments below.
#binance #tramnguyen #bitcoin #eth $BTC $ETH $BNB