Speaking today during the Hong Kong fintech week, the People’s Bank of China Chairman Yi Gang stated that the ongoing digital yuan tests in several cities have yielded successful results.
China’s central bank, People’s Bank of China Chairman Yi Gang said that nearly 4 million transactions were processed using the digital yuan, which amounts to more than 2 billion yuan (US $ 299 million) in total.
President Gang stated that they support financial services that are of great importance in China’s spread of digital yuan, including micro-loans and risk management, with new technologies, especially in remote areas, while the coronavirus pandemic also increases the need for contactless banking and wants to balance consumer needs with safety. He said that this situation creates difficulties for central banks.
Speaking at a virtual panel with the General Manager of the Bank for International Settlements, Agustin Carstens, and the President of the Central Bank of the Netherlands Klass Not, Yi Gang also talked about the difficulties of protecting consumers’ private information.
According to Reuters, Yi stated on the panel that the digital yuan is still in an early trial phase and that it is not a project to be implemented in a short time. “China should build a near-perfect skeleton, especially in terms of transparency,” said Yi.
The digital yuan is quickly coming into use in the country. Recently, Chinese smartphone giant Huawei announced that its newly introduced flagship phone Mate 40 will also support digital yuan.