China’s central bank called for the orderly expansion of the scope of the digital yuan pilot project through interconnectivity with traditional electronic payment tools to make its usage scenarios more convenient for customers.
Quoted by the government-run news portal China.org.cn, Fan Yifei, vice governor of the People’s Bank of China, said regulations and standards in areas such as digital identities, Bluetooth and QR codes should be unified to improve the interconnectivity of different types of payment tools.
The vice governor added that the scope of the digital yuan pilot project will be expanded at an orderly pace. He also explained how to improve the security of using the digital yuan through upgrading relevant technologies to prevent user information leakage and eliminate data security risks.
This is not the first time that the People’s Bank of China has mentioned the expansion of the digital yuan pilot program this year. In another major leap forward for e-CNY, Chinese authorities have expanded the range of utilities included in its pilot project.
Two cities in Zhejiang province – Guanzhou and Ningbo – have started experimenting with digital RMB to pay for public bus tickets and subway rides. Passengers can now use this form of central bank digital currency (CBDC) to pay for public transport on 10 bus lines and 125 subway stations through the digital yuan app.
Total e-CNY volume exceeds 90 billion yuan
Not so long ago, China expanded the use of e-CNY to include the payment of income tax, stamp duty and social security premiums. This development could give significant exposure to e-CNY, which faces fierce competition from other online payment platforms.
A beta version of the digital yuan app has been officially launched for iOS and Android on Chinese app stores. Although the coin has been available to some users in China for over a year under limited pilot programs, this was the first time it explored various methods of paying taxes using the digital yuan.
The app, which basically involves physical money converted into a digital form, is available on Android app stores in China and Apple’s App Store. The distribution of e-CNY occurs through a two-tier system that transfers digital currency from China’s central bank to commercial banks, which then distribute the currency directly to consumers.
35 Chinese commercial banks are now allowing customers to access the country’s central bank’s new digital currency (CBDC), suggesting another step towards wider rollout.
The digital yuan, which is controlled and issued by the Chinese government, is a central bank digital currency (CBDC). Still, the People’s Bank of China hasn’t officially assigned a monetary value yet because the digital yuan hasn’t been launched to the public yet.
This pilot program has since been gradually expanded through invitations and cash incentives to eventually reach more than 150 million registered users with a total volume exceeding 90 billion yuan (about 15 billion U.S. dollars), the central bank revealed. .