Yesterday Chinaās central bank announced the latest statistics of its central bank digital currency (CBDC) issuance. By the end of August, the pilotĀ digital yuanĀ had a cumulative 360 million transactions, 36% higher than the 264 million three months earlier.
The Digital Currency Research Institute said that the cumulative value of eCNY transactions was 100.04 billion yuan ($13.9bn), a 20% increase from 83 billion ($11.5bn) in May. Together this implies the average transaction value has declined from 314 yuan ($43.52) to 278 yuan ($38.50). This could mean there were fewer business transactions.
The number of merchant stores accepting transactions is now 5.6 million compared to 4.567 million.Ā
Cross border eCNY proceeds
It was confirmed that cross border payments are also being trialed, but neither of the activities is new. Itās widely known that the Peopleās Bank of China is participating in theĀ MBridge Project, aĀ multi-CBDCĀ initiative involving the BIS Innovation Hub and the central banks of Hong Kong, Thailand and the UAE. The project involved 20 banks and recently concluded, processing a total of $22 million in foreign exchange transactions.
It is also linking the digital yuan toĀ Hong Kongās faster payment system, which was reported late last year.