China’s digital yuan transactions amounted to 7 trillion yuan (about 986.07 billion U.S. dollars) by the end of June this year, said the central bank’s deputy governor on Thursday.

According to a report by China Central Television (CCTV), the digital yuan, issued by the People’s Bank of China (PBOC), functions as a digital form of legal tender and constitutes a component of the Chinese currency, akin to the physical renminbi (RMB).

After over four years of trial operation, China has preliminarily verified the feasibility and reliability of digital yuan in theory, business and technology, while the operation structure has been formed and various systems have been continuously improved, said Lu Lei, deputy governor of the People’s Bank of China, at a press conference.

“Currently, the digital yuan has been piloted in 17 provinces, regions and municipalities in sectors such as wholesale and retail, catering, cultural tourism, education and medical care. A number of online and offline application schemes that
can be replicated and promoted have taken shape. By the end of June this year, digital yuan transactions had totaled 7 trillion yuan,” said Lu.

In the pilot cities, the digital yuan is being used in a wide range of scenarios. By the end of June, Beijing had recorded nearly 686,000 online and offline use cases, while in Suzhou the figure exceeded 1.18 million.

The digital yuan is also being used for a variety of purposes, including tax payments, salary disbursements, public transit payments, rent subsidies, and cross-border businesses through a multi-central bank digital currency platform.

The central bank and relevant financial institutions will grasp the general trend of digital development, continuously and steadily promote the research, development and application of digital yuan.

Source: Emirates News Agency