PBoC releases the pilot version of their digital yuan

Last Tuesday, January 4, The People’s Bank of China (PBoC) officially released the pilot version of the digital yuan wallet application according to a report of the local news site, BlockBeats, on Twitter on the same day. The electronic Chinese yuan (e-CNY) is available on both iOS and Android devices which can be downloaded by users from Shanghai. The app allows users to create and manage a personal digital wallet along with online yuan transactions.

In the application developed by the researchers of the central bank, global news provider Reuters reported on January 4 that all users were notified that it was still in the pilot phase and is only available for a selected number of people. Moreover, it was said that the app is supported by various institutions including major local banks that provide e-CNY services.

PBoC Governor Yi Gang once discussed the developments of the e-CNY during the virtual conference hosted by the Bank of Finland Institute on November 9, 2021, as per crypto news site Cointelegraph. He stated that they are looking into all the possible issues relating to the security of the personal information of their users along with the different regulations to be put in place. 

Moreover, he also pointed out that they have ‘adopted a principle of anonymity for small transactions regarding the digital yuan for small transactions regarding the digital yuan and will only step in to regulate under the law for large transactions’, as translated by Cointelegraph.

In terms of data collection, Yi Gang said during the same virtual conference that they will only ask for the basic details of their users that are ‘legally required’ which is far less compared to other electronic payment applications found today. Adding to this, the PBoC will ensure that the storage of the gathered information is kept safe and will not be given to any third party or government agency.

Unlike most countries, China is one of the first nations to push for the central bank digital currency (CBDC) with a transaction volume of over 62 billion yuan as of October 2021. Additionally, Yi Gang also mentioned that the e-CNY is mainly for consumer spending in the retail sector but they are planning to expand it. He said that PBoC aims ‘to cooperate with central banks, international agencies and cryptocurrency entities’.

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