China’s pilot project for the digital yuan is gaining momentum.
The governor of China’s central bank has revealed more details about the ongoing pilot project for the country’s digital currency
Yi Gang, the governor of the People’s Bank of China, said the pilot projects for the digital yuan have processed more than four million transactions to date, valued at more than $ 299 million. He announced these numbers at the Hong Kong Fintech Week conference on November 2nd, Bloomberg reported .
According to Yi, the pilots have run smoothly so far after expanding to four cities for large-scale testing.
The growing demand for digital and contactless payment methods in the wake of the coronavirus pandemic posed major challenges for central banks. They try to provide users with security and convenience at the same time, says Yi.
He explained that fintech companies have some key advantages over commercial banks in terms of customer base building and risk management
The PBoC has the first pilot projects for their planned digital Yuan in April 2020 started . Initially, the pilot test was carried out in four large cities : Shenzhen, Chengdu, Suzhou and Xiongan. The program is said to have been expanded to nine cities , including Guangzhou, Hong Kong and Macau.
In early October, the PBoC officially announced that transactions worth $ 162 million had been processed in the digital yuan wallets between April and August 2020 .
Big tech companies are now preparing to adopt the digital yuan. Huawei recently announced that a wallet for the currency would be offered on its latest smartphone, the Mate40. Users can use it to conduct transactions even when they are offline.