Beijing, July 16 (Xinhua) - China Central Bank on Friday launched a white paper on the progress of the country's digital fiat currency, e-CNY, saying that It will be constantly pushing the pilot schemes forward from its digital yuan.

E-CNY is the digital version of the FIAT currency issued by the Popular Bank of China (PBOC). Is a securities-based hybrid payment instrument, based on quasi-account and based on legal tender state and account link next to the couples, the white paper clarified, adding that the E-CNY is "mainly a substitute "For cash in circulation and coexist with the physical yuan.

Purpose of development

As the digital economy develops, the shared part of the transactions carried out With cash they are decreasing rapidly in China.

Meanwhile, a variety of cryptocurcities called as Bitcoin poses potential risks for financial security and social stability, given their lack of intrinsic value, acute pricing fluctuations, Low commercial efficiencies and enormous energy consumption, the white paper pointed out.

In many countries and regions, central banks or monetary authorities have maintained a close eye on the development of FINTECH and has sought digitize the FIAT currency.

The development of the E-CNY system in China aims to create a new form of RMB that complies with public cash demand in the era of digital economy .

"Supported by a retail infrastructure that is reliable, efficient, adaptable and open, the E-CNY system will strengthen China's digital economy, will improve financial inclusion And it will make the monetary and payments systems more efficient, "read the target paper.

progress

As the top-level design, functional development and system tests have been Basically, the PBOC has been completed, until now pilot programs in certain representative regions. It has ensured that programs are constantly executed, safe, managed, innovative and practical.

The PBOC began its research and development project of E-CNY (R & D) in at the end of 2017. Large commercial banks, telecommunications operators and Internet companies with significant assets, large market shares and strengths in technology development were selected to participate in the project.

Since the end of 2019, the PBOC has launched E-CNY pilot programs in Shenzhen, Suzhou, Xiong'an and Chengdu. Since November 2020, Shanghai, Hainan, Changsha, Xi'an, Qingdao and Dalian have joined the pilot programs.

As of June 30, 2021, the E-CNY has been applied to more than 1.32 million scenarios, covering public service payments, services of Catering, Transportation, Purchases and Government Services.

More than 20.87 million personal portfolios and more than 3.51 million companies. Wallets have been opened, with a total of 70.75 million transactions and a transaction value totaling approximately 34.5 billion yuan (approximately 5.33 billion US dollars).

Future perspectives

In the future, PBOC will continue to advance the Pilot E-CNY I project + D online with the 14th five-year plan of China, without pre-established schedules for the final launch.

Efforts will focus on areas that include expanding test scenarios to cover all possible scenarios in selecting pilot regions, optimizing e-CNY ecosystem and improving Relevant institutional arrangements and rules, pointed white paper.

Although technically ready for cross-border use, the E-CNY is mainly designed mainly for national retail payments.

"Looking ahead

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