China’s Digital Yuan Isn’t Taking Off Despite State Employee Salary Trial: Report
-
Many consumers prefer to use online payment tools such as Alipay and WeChat Pay.
-
The digital yuan is fraught with privacy concerns as it incorporates elements of blockchain technology so transactions are all theoretically traceable.
China’s digital yuan, also known as e-CNY, is failing to catch on during a trial in which state employees receive their salary in the central bank digital currency (CBDC), according to a report by the South China Morning Post (SCMP).
Most of the early recipients immediately transfer the digital yuan balances to their bank accounts to spend as cash, the SCMP reported.
“I prefer not to keep the money in the e-CNY app, because there’s no interest if I leave it there,” Sammy Lin, one participant in the pilot, said. “There are also not so many places, online or offline, where I can use the e-yuan.”
Almost all developed countries are at least exploring the development of a CBDC as a digital complement to cash, with China the most advanced. The e-CNY has been undergoing trials across China since 2019, though there is no timeline for a national launch.
The CBDC is also fraught with privacy concerns as it incorporates elements of blockchain technology so transactions are all theoretically traceable.
That means consumers prefer to use online payment tools such as Alipay and WeChat Pay. Paying in physical cash also remains an option, though this is far less prevalent.
Edited by Sheldon Reback.
Disclosure
Please note that our
privacy policy,
terms of use,
cookies,
and
do not sell my personal information
has been updated
.
CoinDesk is an
award-winning
media outlet that covers the cryptocurrency industry. Its journalists abide by a
strict set of editorial policies.
In November 2023
, CoinDesk was acquired
by the Bullish group, owner of
Bullish,
a regulated, digital assets exchange. The Bullish group is majority-owned by
Block.one; both companies have
interests
in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.
CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/008ae87f-5c6e-412b-816b-ded600ac5054.png)
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.