China’s Digital Yuan Wallet Adoption Reach 140 Million Users, PBoC Reports

According to PBoC official, the number of digital yuan wallets in China has increased almost seven times since the end of June, passing 140 million milestone.

China is clear leader of creating a digital version of a national currency. In recent months, the country has launched numerous campaigns aiming to popularize the e-yuan among its people.

Following all these developments, a top official at the People’s Bank of China reported that the number of individuals who have opened digital yuan wallets reached 140 million, which equals around 10% of the local population. The number of the accounts has increased nearly seven times since June it stood at 24 million.

Digital yuan transactions have also dearly doubled from $5.4 billion four months ago to $9.7 billion as of now.

It’s worth mentioning that one person can open more than one account since the only requirement is to provide a phone number.

However, as e-CNY payment transaction method is relatively new, it has been exploited by criminals. Xinmi Police arrested 11 gang members after it cracked down the country’s first use of digital yuan in money laundering operations. The criminals have reportedly acted on behalf of an overseas fraud group hiding in Cambodia.

China-USA Politics And The Digital Yuan

As the Winter Olympic Games in Beijing approach, and as China plans to allow athletes and foreign visitors to use its CBDC during the sporting event, tension between the two economic giants has been heating up.

Three Republican Senators Cynthia Lummis, Marsha Blackburn, and Roger Wicker suggested to the US Olympic Committee to boycott using the digital yuan during the event over spying concerns.

China’s Foreign Ministry was quick to respond to the attack and said that the Americans shouldn’t mix politics and sports, and stop making trouble out of the digital yuan.

The Chinese officials said that the U.S. is not aware of what exactly digital currency is:

“We suggest they figure out what a digital currency really is. The US politicians should abide by the spirit stipulated in the Olympic Charter, stop making sports a political matter, and stop making troubles out of the digital currency in China.”