PBOC governor reports 4 million digital yuan transactions

Yi Gang, governor of the People’s Bank of China, said that users had completed more than 4 million digital yuan transactions under the pilot program rolled out in four cities. Bloomberg reports this.

The total value of payments in the digital currency exceeded 2 billion yuan (~$299 million), Yi Gang said, speaking at the Hong Kong Fintech Week conference.

He participated in a panel discussion with Agustín Carstens, head of the Bank for International Settlements, and Klaas Knot, president of the Dutch central bank.

In his remarks, Yi Gang noted:

• Fintech companies have a number of key advantages over commercial banks in terms of expanding the customer base and risk management;
• New technologies, including mobile payments, have broadened access to financial services in remote areas;
• The growth of contactless banking services amid the pandemic has posed challenges for central banks, which must ensure consumer convenience while maintaining safety;
• Protecting consumer privacy has become a regulatory challenge.

In Shenzhen, during the program distributing 50,000 digital yuan ‘red packets’, almost 2 million people applied to receive them.

Lottery winners spent 88% of the distributed funds, executing 62,788 transactions worth 8.8 million yuan (~$1.3 million).

For details on how China has emerged as a leader in the race to launch a national digital currency, read ForkLog’s article.

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