tl;dr
The digital yuan, known as e-CNY, is facing challenges during a trial in China, with state employees quickly transferring their digital yuan balances to bank accounts for spending as cash. Privacy concerns exist as the digital yuan incorporates traceable blockchain technology. Consumers still prefer...
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Consumers prefer online payment tools like Alipay and WeChat Pay over China's digital yuan due to limited usability and lack of interest accrual.
China's digital yuan, e-CNY, faces low adoption during state employee salary trial, with recipients quickly transferring balances to bank accounts for cash spending.
Most developed countries are exploring central bank digital currencies (CBDCs) as a digital cash complement, with e-CNY being the most advanced, but facing privacy concerns and limited usability.
Hong Kong's Crypto ETFs are not available in Mainland China. The digital yuan, known as e-CNY, is facing challenges during a trial in China, with state employees quickly transferring their digital yuan balances to bank accounts for spending as cash. Privacy concerns exist as the digital yuan incorporates traceable blockchain technology. Consumers still prefer using online payment tools like Alipay and WeChat Pay, and physical cash remains an option. Many developed countries are exploring central bank digital currencies (CBDCs), with China being the most advanced, but there is no set timeline for a national launch.
Many consumers prefer to use online payment tools such as Alipay and WeChat Pay. The digital yuan is fraught with privacy concerns as it incorporates elements of blockchain technology so transactions are all theoretically traceable. China's digital yuan, also known as e-CNY, is failing to catch on during a trial in which state employees receive their salary in the central bank digital currency (CBDC), according to a report by the South China Morning Post (SCMP). Most of the early recipients immediately transfer the digital yuan balances to their bank accounts to spend as cash, the SCMP reported. “I prefer not to keep the money in the e-CNY app, because there’s no interest if I leave it there,” Sammy Lin, one participant in the pilot, said. “There are also not so many places, online or offline, where I can use the e-yuan.” Almost all developed countries are at least exploring the development of a CBDC as a digital complement to cash, with China the most advanced. The e-CNY has been undergoing trials across China since 2019, though there is no timeline for a national launch. The CBDC is also fraught with privacy concerns as it incorporates elements of blockchain technology so transactions are all theoretically traceable. That means consumers prefer to use online payment tools such as Alipay and WeChat Pay. Paying in physical cash also remains an option, though this is far less prevalent.
Read More: No, Hong Kong's Crypto ETFs Aren't Available in Mainland China
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