Image by Ledger Insights
After keeping quiet about the progress of its central bank digital currency (CBDC) pilot for a year, the People’s Bank of China has now reported digital RMB volumes for two consecutive months. The cumulative figure to the end of June was RMB 7 trillion ($988 billion), up from RMB 6.6 trillion ($932 bn) at the end of May. That’s equivalent to $56 billion in a month.
While many envision using a CBDC for payments at the grocery or restaurants, the digital RMB is also used for high value corporate transactions, including cross border ones. Plus, state owned companies make salary payments with the eCNY. Without the figure for the number of transactions, it’s hard to tell the current average transaction value. That figure rose almost seven fold between 2022 and 2023 to RMB 1,895 ($267).
During a press conference earlier this week, Lu Lei, Deputy Governor of the People’s Bank of China, outlined some of the next steps for the eCNY. A key one is to make it more compatible with the digital economy.
Retrieved from: https://www.ledgerinsights.com/digital-rmb-transaction-volumes-hit-56-billion-for-one-month/
