Chinese Digital Yuan Expansion
The Chinese Digital Yuan: Expansion and Benefits
The world of digital payments is rapidly changing and evolving. From the launch of the Chinese digital yuan in 2020 to the addition of new technologies and features, the digital yuan is quickly becoming a major player in the world of digital payments. As one of the largest economies in the world, China is making great strides to revolutionize the way we use money by introducing the digital yuan. Matwal Solutions is here to help you understand the expansion of the Chinese digital yuan and all the benefits it brings.
The Circulation of the Digital Yuan
In 2020, the Chinese Central Bank launched its digital yuan program with the aim of reaching different regions of China. Fast forward to 2021, and the circulation of the digital currency rose to 13,610 million yuanes. In Changsha city, 300,000 merchants already accept the digital currency as a method of payment, and the number of transactions with the currency has amounted to 53 million, with a total value of 8,300 million yuanes.
The Expansion of the Pilot Program
In 2021, the People’s Bank of China announced an expansion of its pilot program to 17 provinces and the addition of more electronic platforms. During the Chinese New Year period, the digital yuan was used to send red envelopes, or “hongbao”, to family and friends. According to data from the China Cyberspace Administration, around 180 million yuan were given in red envelopes in cities where pilot tests were being carried out.
New Features of the Digital Yuan
The digital yuan also covers new functions for electronic payments. The People's Bank of China added a function that allows making payments without an internet connection from an Android phone, and payments can even be made when devices are turned off. Additionally, mid-2021 saw the possibility of paying taxes, land sales and loans with the Chinese digital currency.
The Benefits of Working with Matwal Solutions
At Matwal Solutions, we are dedicated to providing the best legal services and helping you understand the expansion of the Chinese digital yuan. Our services and fees follow the strictest legality of the jurisdictions where we have presence and are designed to help you make the most of the digital yuan and its many benefits.