Bank

Yuan

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/challenges-faced-by-digital-yuan-adoption-in-china/" data-wpel-link="internal">Challenges Faced by Digital Yuan Adoption in China</a><br></p>
<p style="text-align: justify">As part of the central bank’s digital currency (CBDC) pilot program, some participants accepting the digital yuan are avoiding its use due to concerns about the state-backed digital currency. According to a May 13 report by the South China Morning Post, some Chinese state employees who are paid with digital yuan rarely use it, preferring instead to convert it to physical cash.</p> 
<h2 style="text-align: justify" id="why-the-digital-yuan-is-not-preferred">Why the Digital Yuan Is Not Preferred?</h2> 
<p style="text-align: justify">Particularly, Sammy Lin, an account manager at a state bank in Suzhou, explained that he does not prefer the digital yuan because the e-CNY app does not accrue interest. He also noted that the use of the digital yuan is limited both online and offline, which restricts the practical use of the digital currency, or CBDC.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-350658 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/05/blockchain-2.jpg" alt="" width="740" height="415"></p> 
<p style="text-align: justify">Government official Andrew Wang mentioned that he is not very concerned about the idea of digital cash since only a part of his salary is paid in digital yuan. However, his spouse, who receives her entire salary in digital yuan, immediately withdraws the entire amount in regular cash due to the impracticality of the digital currency. Wang also emphasized that money cannot be deposited into or used to purchase <a href="https://finance.coin-turk.com/" data-wpel-link="external" target="_blank" rel="nofollow noreferrer">financial</a> products with the e-CNY wallet.</p> 
<h2 style="text-align: justify" id="concerns-over-cbdc-usage">Concerns Over CBDC Usage</h2> 
<p style="text-align: justify">General concerns about the use of digital yuan in China include broader surveillance worries and limited use cases. According to former Governor of the People’s Bank of China, Yi Gang, more than $250 billion in transactions were conducted through digital yuan by July 20, 2023. However, researcher Ye Dongyan from Cheung Kong Graduate School of Business in Beijing mentioned that the government needs to balance privacy and security in its efforts to expand the use of digital yuan. Dongyan highlighted that while paper money is anonymous, digital yuan is different and therefore requires protection of information tracking and security.</p> 
<p style="text-align: justify">Gang stated that the biggest challenge of the digital finance era is privacy issues. However, at a forum in Beijing in March, he defended that digital yuan could maintain privacy through “controllable anonymity,” meaning small payments are not tracked, but larger ones might be.</p> 
<h2 style="text-align: justify" id="efforts-to-increase-cbdc-adoption">Efforts to Increase CBDC Adoption</h2> 
<p style="text-align: justify">Since the inception of the digital yuan in 2020, various jurisdictions in China have been working to increase the adoption of CBDC. Many cities have taken steps towards this goal by distributing over $26.5 million through subsidies and consumption vouchers.</p> 
<p style="text-align: justify">This report sheds important light on the obstacles to the widespread adoption of the digital yuan in China and the acceptance process within the community. It appears that the state will need to address citizens’ concerns about the security and ease of use of the digital yuan.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/challenges-faced-by-digital-yuan-adoption-in-china/" data-wpel-link="internal">Challenges Faced by Digital Yuan Adoption in China</a></h5>

Challenges Faced by Digital Yuan Adoption in China

Table of Contents

COINTURK NEWS

Other articles published on May 13, 2024

Cryptocurrency: Fuel for Global Business Growth

Ripple Versus Tether: Brad Garlinghouse Douses Tension In Latest Comment

4 Top Crypto Losers of the Start of the Week

Ripple CEO Warns of US Government Targeting Tether, Potential Impact

Big Week Ahead: US Consumer Price Index, Ethereum ETF, Crypto Regulation, SEC vs Ripple

Cryptocurrency Arweave Decreases More Than 8% Within 24 hours

Join our free newsletter for daily crypto updates!