Il valore delle criptovalute oggi non è più in discussione. With a market capitalization of over 900 billion dollars, this risky market is attracting the attention of many people all over the world.
Although most governments are still slow to regulate the sector, some are much more aggressive than others. China is not a perfect example. The country has recently launched a project called e-CNY.
The Digital Yuan or e-CNY is essentially a digitalized version of the official Chinese currency, the Renminbi (RMB). It is a digital currency used every few months as an electronic payment method. It is issued by Banca centrale cinese and is used mainly for acquisitions on a small scale and at high frequency and for detailed transactions.
Because the e-CNY is part of the monetary base of the country, it is an integral part of the cash in circulation in China. Moreover, it has the same value of the renminbi.
The rapid growth of e-CNY in the Chinese market
L’e-CNY può essere utilizado solo da un’application specifica che ne constititue il portafoglio. The application was launched on the Android and iOS platforms at the beginning of January of this year. It quickly became one of the most popular applications in the country.
In fact, a sole two weeks from the launch, it is estimated that approximately one fifth of the Chinese population has already downloaded the application. A more thorough analysis confirms that in that period the users carried out transactions for a value of 87.5 billion yuan (13.78 billion dollars).
In an interview, Zou Lan, the head of financial markets of the People’s Bank of China (PBOC), explained that the origin of this surprising development is quite simple. The government has spent more than two years experimenting with the use of digital yuan in some large cities of the country.
Initially, the citizens had to take part in a casual extradition to access as users, but then the Chinese Central Bank has engaged the just market. It has proceeded to make the portafoglio e-CNY available on iOS and Android throughout China.
The gradual expansion of the project in China
Although the portafoglio e-CNY is available on various Chinese app stores, it is not accessible to everyone. Indeed, only users who reside in one of the cities included in the list of pilot cities can use the application.
According to various reports, the Chinese government intends to expand the experiment of e-CNY to four new provinces, including Guangdong, which will probably be the most populous. The main purpose of this initiative is to stimulate the adoption of this new payment system by a large number of users.
Therefore, in addition to the province of Guangdong, e-CNY will also be available for residents of the provinces of Jiangsu, Hebei and Sichuan. According to the vice governor of the Chinese Central Bank, Fan Yifei, the e-CNY project represents an important infrastructure in the digital era.
Previously, the test for the use of the digital yuan was carried out in the cities of Shenzhen, Suzhou, Xiongan and Chengdu. However, despite this very narrow circle of users, the project has been very successful in terms of adoption and use. At the end of 2021, it is estimated that the transactions will reach the equivalent of 14 billion dollars.
Verso il dominio cinese?
According to expert reports, the availability of the e-CNY wallet on the Android and iOS platforms has drastically increased the amount of transactions in e-CNY. It is therefore clear that the government, through its Central Bank, will work to expand the project to more cities, strengthening at the same time the protection of privacy and the prevention of crime.
For many members of the US government, the Digital Yuan project is just another surveillance tool developed by China. Temono, however, che l’e-CNY finisca per replacer il dollaro in termini di dominio globale.