Yuan Pay Group: The Soaring Value of China’s Yuan
China’s central bank reported today that the country’s digital currency, known as e-CNY, had processed over $5.3 billion (34.5 billion yuan) in transactions, despite tightened restrictions on the production and use of cryptocurrencies such as Bitcoin and Ethereum.
The Development of Digital Yuan
According to the People’s Bank of China, this sum was divided among more than 70.7 million dealings between the 20.8 million people and 3.5 million enterprises that used e-CNY wallets. Those figures may seem insignificant when compared to China’s population of 1.4 billion people, but the digital currency is still in the testing phase ahead of its formal launch in 2019.
So far, according to information on the PBOC’s English language website, “as long as the design, system testing, and function development have all been completed, the PBOC has begun implementing pilot programs in some representative regions, while ensuring that the pilots are run in a steady, innovative, safe, and practical approach.”
The People’s Bank of China began working on the e-CNY in 2014, established the Digital Currency Institute in 2016 to develop the first version of the coin, received approval from the State Council to begin testing the digital currency with commercial partners in 2017, and then began public testing all over the country in 2019.
This puts the creation of e-CNY far ahead of the development of a comparable digital currency associated with the United States which is dollar. Those efforts—as well as cryptocurrencies and stablecoins—will be covered in detail in a report to be published by the Federal Reserve in September, according to Federal Reserve chair Jerome Powell. In the meanwhile, e-CNY has been utilized in many transactions in different places.
Additionally, the continued development of e-CNY provides an explanation for the tightening of regulations on cryptocurrencies such as Bitcoin, which the People’s Bank of China (PBOC) criticized in June for facilitating criminal activity, infringing on “the property safety of the people,” and disrupting “the normal economic and financial order.” Yuan pay group also compete with the official digital currency.
In a white paper issued today, the People’s Bank of China (PBOC) said that e-CNY is now on the testing period in 11 cities and provinces around China. The company has also said that it “would investigate cross-border tests depending on international demands,” and that it will “respect other nations’ monetary sovereignty” during the process.
With the increasing popularity of Yuan pay group. It is not that impossible to increase its value. However, the process is never easy, knowing that there are lots of digital currencies now available. The idea of using this currency in various transactions in China is indeed an effective move to improve its value. This also gives people an idea on what they can expect on its value in the future. As more and more people will start utilizing this digital currency, then this can raise its value in the market that will surely attract more people to invest on it and use it for trading.