China’s state digital currency’s new wallet has quickly become one of the most downloaded applications in the country within days of its launch. Its use and integration with other apps have contributed to a surge in digital yuan payments, media reports reveal.
Introduction of the wallet increases the digital yuan ahead of the New Year celebrations and the Winter Olympics
The yuan digital wallet (e-CNY) was one of the most downloaded apps in China the week after it was offered to the public. On Wednesday, one day after the premiere, downloads exceeded Tencent’s Wechat and became the most popular app on Apple’s iOS, the South China Morning Post reported, citing market researchers. As of Monday, it was also the second most downloaded financial app in Xiaomi’s app store.
The e-CNY app is generally available for download, but can currently only be used in selected areas. The People’s Bank of China (PBOC) Digital Currency Research Institute, the developer of the software, is working with authorities in 10 pilot cities including Shanghai, Shenzhen, Xiongan, Chengdu, Suzhou and Beijing, where it has spent digital yuan amounts under Red envelope actions.
The launch of the application is part of an effort to promote China’s central bank (CBDC) digital currency ahead of Lunar New Year, which begins February 1, a popular time to give away red packages, the publication said. During the week-long vacation, the 2022 Beijing Winter Olympics will begin on February 4th. Visitors to the venues in the capital can use the e-CNY without opening a local bank account.
The digital yuan can also be spent through other payment apps like Alipay and Wechat Pay, which make up 90% of the Chinese mobile payments market. The CBDC is also available in the applications of seven Chinese banks – Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China, Bank of Communications, Postal Savings Bank of China, and China Merchants Bank.
According to a report by China.org.cn, E-CNY payments have seen a “stratospheric surge” in the past week since the currency became available on Chinese mobile apps. The state news portal cited the local service company Meituan, which saw an increase in digital yuan payments of almost 43% after integrating its app and the e-CNY wallet. The value of the transactions also increased by more than 64% in the week leading up to the launch.
China’s digital yuan is arguably the most advanced CBDC in the world, ahead of similar projects in the US, EU and Russia. A PBOC official announced in November that the digital currency was being used in nearly $ 10 billion in transactions. By October, around 140 million Chinese had opened a digital yuan account. While promoting the e-CNY, the Beijing government launched nationwide crackdown on cryptocurrencies and related activities last year.
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App, application, applications, apps, CBDC, China, Chinese, digital currency, digital yuan, e-CNY, launch, Lunar New Year, mobile app, mobile apps, payment app, payment apps, payments, PBOC, promotion, wallet, Winter Olympics, yuan
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Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.
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