The digital yuan is not widely used in China

According to Xie Ping, a former official of the People’s Bank of China (PBoC), the digital yuan is used by the Chinese.

As reported by financial news source Caixin, Xie Ping, a former PBoC official, said at a conference that digital yuan The application needs to be expanded after he tells the media he is not happy with it Result a limited trial.

The data indicated that use has been negligible. He claimed that in total only 100 billion yuan ($14 billion) of the digital currency had been circulated in the last two years of testing.

Disappointing results with the digital yuan

Xie Ping, former director general of the PBOC, said the results could be better.

Central bank digital currencies (CBDCs) are digital tokens issued by central banks and are similar to cryptocurrencies. China has taken the lead in the middle Various nations in creating CBDCs.

What must change, according to Xie, is the use of the digital yuan as a form of payment for goods and services.

“A payment market structure has been developed that matches the needs of daily consumption.”

Shi Ping, former PBOC official.

He claimed that the digital yuan had no beneficial relationship with the operations of the banks and no commercial benefits were derived. While this was happening, third-party payment systems such as Alipay from Alibaba Group (9988. HK) offered consumers a more attractive selection of features including lending, insurance and investment.

According to Xie, allowing people to buy financial services with the digital yuan could solve the problem. CBDCs can also be linked to more payment platforms, allowing them to tap into people’s daily spending habits.

Earlier, in a bid to attract more users to its one-year-old digital wallet, the People’s Bank of China (PBoC) introduced an electronic equivalent The traditional red packet for the capabilities of a Chinese wallet application, commonly known as the e-CNY app.

As of a recent update, users of the e-CNY app can send each other digital red packets, often referred to as Hongbao in China. It begins just a month before the Chinese New Year holiday, when people traditionally give red envelopes filled with money to their loved ones.

However, PBoC officials have often maintained that the digital yuan is no digital payment method like wechat pay and alipay. Instead, it is a way of exchanging notes and coins. The Chinese central bank is currently setting a timeline for the launch of the digital yuan on a wider scale.

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