To revitalize consumption and encourage the adoption of e-CNY, several Chinese cities have carried out distributions of digital yuan. At the same time, the city of Suzhou hopes to reach a transaction volume of 295 billion dollars by the end of the year.
Chinese cities distribute digital yuan to drive adoption
With the development of the digital yuan, China has taken a lead over other major world powers in digital central bank currencies (MNBCs). In order to promote its adoption by the population and to stimulate consumption, several major cities in the country have, on the occasion of the Chinese New Year, carried out distributions of e-CNY.
In total, these operations amount to 180 million yuan, which is about 26.55 million dollarsdelivered for example through coupons, through nearly 200 “digital activities”.
It is reported in particular that these activities took the form of promotions with various businesses such as supermarkets, tourist activities or mobile packages. To her only, the city of Shenzhen, for example, would have distributed 100 million yuanin order to revitalize the catering sector.
👉 To go further – Find our guide on central bank digital currencies (MNBC)
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The objectives of the city of Suzhou
As the digital yuan sees its use grow, each player in the country has its own objectives for the development of this MNBC. This is for example the case of suzhou citya metropolis not far from Shanghai, known for its electronics industry.
The local government hopes reach a total of transactions valued at 2,000 billion e-CNIs by the end of the year, which is approximately $295 billion. To give a scale of comparison, the cumulative total of transactions stood at 340 billion yuan at the end of 2022.
In addition, the city hopes that by 2025 it will house up to 2,000 institutions and companies in the digital finance sector.
If the other major world powers are still in the development phase of their own MNBC, they are watching the progress of e-CNY with attention. Last year, in the United States, a bill tried to ban the digital yuan in mobile applications, under the guise of combating espionage attempts.
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Sources: Global Times, Shanghai Securities News
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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