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China releases white paper of its digital yuan

Updated: Jul 25, 2024
Published: Jul 16, 2021
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The People's Bank of China has published a white paper for the e-CNY or digital yuan. It includes an English version and clarifies several issues.

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The white paper explains the primary goals of the digital yuan

The paper outlines the primary goals of the digital yuan. First, it ensures financial inclusion and provides a public good, digital cash, while physical money is declining.

Second, the white paper explicitly states that the central bank will issue the Central Bank Digital Currency (CBDC), and commercial banks will merely distribute it.

The paper also says: "The e-CNY system collects fewer transaction data than traditional electronic payments and does not share information with third parties unless otherwise specified in-laws and regulations."

A third goal is cross-border payments. The white paper says that while citizens can use the digital currency across borders, it is "primarily" for domestic use.

There have been 70.75 million transactions using the digital yuan

By the end of June, individuals had opened nearly 21 million wallets, and businesses had launched another 3.4 million wallets. The central bank processed 70.75 million transactions using digital yuan.

Foreigners generally could not participate in the state-organized digital yuan handouts. Using the digital currency is restricted to mainland China, Hong Kong, or Macao. Despite the fact that the digital yuan is not created for cross-bored transactions. The PBOC will explore cross-border trials based on overseas needs and will respect other countries' monetary sovereignty.

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