More Than 3.12 Million Digital Yuan Transactions Have Already Been Processed in China
While you could count the number of countries dabbling in national digital currencies on the fingers of one hand, almost none of them could even come close to China when it comes to the practical development of the new asset class.
After allocating billions of yuan into various blockchain development projects across the country, China began pushing major development of its digital yuan with the help of the national bank, the People’s Bank of China. Dozens of closed test runs of both the digital yuan and the wallet that actually facilitates its use took place throughout the summer, but the story around DCEP culminated earlier this month when a massive pilot was launched in Luohu.
The local government distributed the so-called “red packets”—bundles of the digital yuan distributed to residents of the Luohu district aimed to be spent with local merchants. The trial turned out to be a huge success, with most of the distributed funds spent. Reports from locals showed that the vast majority of users gave the wallet a high rating, with many continuing to top up their balances and spend the digital yuan even after the pilot ended.
Until just a few days ago, however, most of the wallet’s success was due to the massive hype caused by local media. Only when the dust from the pilot finally settled and the official numbers were published was the public able to see just how big the project was.
During the Web3 Conference hosted by the Web3 Foundation, Zou Chuanwei, an economist at Wanxiang Labs, revealed some of the numbers surrounding the “red packet” project. Zou quoted data first shared by Fan Yifei, the vice governor of the People’s Bank of China, who commented last week on the bank’s plan for the development of the digital yuan.
According to Zou, Wanxiang Labs, which was contracted by the People’s Bank of China to facilitate the digital yuan infrastructure, opened over 113,000 personal wallets and 8,859 public wallets, belonging to various merchants, companies, and organizations.
The most astonishing piece of information, however, was the number of transactions that utilized the digital yuan. Zou said that the company processed more than 3.12 million transactions during the pilot, handling more than 1.1 billion yuan in volume.
When considering the fact that the pilot only lasted for six days, starting on Oct. 12 and ending on Oct.18, these numbers really begin to paint a clear picture of how fast the digital yuan has been adopted in China.
With over 6,000 pilot projects of various sizes taking place around the country and more scheduled to take place in the following weeks, we can expect to see more success stories like these in the very near future.