Adoption not yet sufficient in China – While the Bitcoin is prohibited in the country of the Middle Kingdom, the digital yuan (e-CNY), he has a very different destiny. We learned earlier this week that the Chinese government distributed recently million yuan digital. Its goal ? Drive adoption of this new form of money: the central bank digital currency (MNBC).
Millions of Yuan Distributed to Drive MNBC Adoption
army for against the dollarbut also any form of decentralization, China is notorious for not liking bitcoin and cryptocurrency at all. However, when it comes to the virtues of blockchain, that’s another story.
Launched two years ago now, China is counting on foster the adoption of his digital yuan (e-CNY). It allows him many advantages compared to traditional payment methods, in particular an increased traceability of transactions allowing a money traffic control.
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e-CNY galore for the holidays
It is therefore during this period of Lunar New Year that several municipalities have distributed millions of e-CNY to invite people to consume during the festivities. These are no less than 200 activities which were launched during the event in order to encourage people to spend.
Several cities would thus have given a total of more than 100 million yuan – is the equivalent of $14.7 million of e-CNY – to stimulate the economy. The China Daily, the Chinese state newspaper, states, for example, that the city of Hangzhou has offered its residents a 80 yuaneither $12 in mid-January. The Global Time, an English-language Chinese media, indicates that the inhabitants of the city have spent these 4 million yuanor $590,000 in 9 seconds during the holidays.
Two years after the launch of e-CNY in China, theadoption of state digital currency remains winded, despite the efforts of the Chinese government. Gifts, “red packets” (money offered for the holidays) and a state-of-the-art digital wallet, recently updated again allowing transactions without an internet connection… Adoption is laborious. A former member of the Central Bank even seems to think, faced with this delicate situation, that the China is on the wrong track with its e-CNY.
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