When it comes to creating a digital version of the national currency, China is one of the most progressive countries in the world. In recent months, the country has launched numerous campaigns to popularize the digital yuan.
As a consequence, the number of digital yuan e-CNY wallets has increased to 140 million, of which 10 million are corporate accounts, according to a top official at the People’s Bank of China. This represents about 10% of the local population and is 7x more than June’s 24 million. Not only that, e-CNY transactions reached 62 billion yuan, or $9.7 billion, up from $5.4 billion four months ago.
However, a person can open multiple accounts as the only requirement is to provide a phone number.
Since the e-CNY payment transaction method is relatively new, it can be used in criminal activities. Xinmin Police (Liaoning, China) arrested 11 overseas fraud gang members using the country’s first digital yuan in money laundering activities.
The approaching Winter Olympic Games, and China’s intention to allow athletes and foreign visitors to use its CBDC, has heated up tensions between the two economic superpowers.
Republican Senators Cynthia Lummis, Marsha Blackburn and Roger Wicker have urged the US Olympic Committee to ban US athletes from using the digital yuan during the event over spying concerns.
China’s Foreign Ministry quickly responded by asking the Americans to “obey the spirit of sportsmanship” and stop messing with the digital yuan. Not only that, they also stated that the US does not know exactly what a digital currency is.
- PBoC’s Digital Currency Head: China Digital Yuan Hit 62 Billion Yuan In Total Transactions Processed
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