Today the People’s Bank of China published a white paper for the e-CNY or digital yuan, including in English. It reiterates previous messages but clarifies some issues. For example, the former central bank governor had previously stated that the state banks issued the e-CNY against central bank deposits, a synthetic CBDC. Today’s whitepaper explicitly states the central bank digital currency (CBDC) is issued by the central bank and commercial banks merely distribute it.
Through the end of June, individuals opened almost 21 million wallets and corporates started another 3.4 million wallets. RMB 34.5 billion ($5.34bn) was processed across 70.75 million transactions. This gives an average transaction value of RMB 488 ($75.47), which is less than half the average in October last year.
The paper outlines the primary objectives of the digital yuan. Firstly, the aim is to ensure financial inclusion and provide a public good digital cash while physical cash usage declines. Digital renminbi holdings will not earn interest.
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