The Evolution of e-CNY!

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The People’s Republic of China (PRC) has gained a relatively higher level of financial systems with easy access individual to financial products and services leading to the development of numerous large-scale financial platforms using fintech (financial technology) to minimize the cost in financial services delivery. Most notably, there are the two companies known as the Ant Group and Tencent; which initiated digital payments. And the People’s Bank of China (PBC) has been also developing a central bank digital currency (CBDC). And thus China's answer to cryptocurrency is the e-CNY or digital yuan which is a centralized cryptocurrency and a cash-like digital currency that is currently being used for retail payments in different parts of China. The People’s Bank of China (PBOC) and e-CNY operating institutions have completed many large-scale e-CNY pilot programs in multiple cities all over China as testing the efficiency in the past few months. And now they have already the android and the iOS app for using the e-CNY which is a significant development in their CBDC development! A total of 11.8 million yuan ($1.64 million) worth of e-CNY was issued in the testing between Aug 15. and Sept. 23, and the Chinese currency was used in a total of 72 payment and foreign exchange transactions, far greater than the other three currencies each.

By adding more surveillance the digital Yuan can make the global recognition of the Yuan to a higher level. A recent report by the South China Morning Post, Chinese yuan playing ‘complementary’ role in interbank settlement, but CIPS won’t rival Swift, says global central bank, the increasing global payment through Yuan can be further extended with the evolution of e-CNY the digital form of the Yuan.

China has released the new digital yuan app for iOS and Android on domestic app stores. Now available to users in 23 cities across China, the app will enable millions of users to use the e-CNY by signing up through a range of commercial banks. In addition, Tencent-owned WeChat announced it would begin rolling out the e-CNY as a payment option on its platform, further introducing the digital currency to over 1.2 billion users. We explain what the e-CNY is, how to use the digital yuan app, and the possibility of widespread uptake of the digital currency.-source:


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The e-CNY
It has the same valuation as the legal RMB. In a different way to other currencies, it has a fixed exchange rate rather than a free-floating value that is determined by the market trend. The value of the RMB is pegged to currency baskets: China Foreign Exchange Trade System (CFETS) RMB Index, including a number of currencies such as the US dollar and the euro. Currently, only Chinese citizens are able to buy e-CNY though some channels are offering it to ex-pats also. As the e-CNY has the same value as the physical RMB it has not been so attractive yet but going to be as further facilities are ensured. Foreigners can use e-CNY through the digital yuan app located in one of the pilot cities or areas and have a bank account at one of the approved Chinese banks. Sign-up is also possible through WeChat Pay and Alipay-affiliated online banks that require a Chinese bank account in order to top up the digital wallet with these two options.

Users in the following 23 cities and areas can sign up to use the e-CNY app:

  • Shenzhen, Guangdong province
  • Guangzhou, Guangdong province
  • Suzhou, Jiangsu province
  • Xiong’an New Area, Hebei province
  • Chengdu, Sichuan province
  • Shanghai
  • Hainan province
  • Changsha, Hunan province
  • Xi’an, Shaanxi province
  • Qingdao, Shandong province
  • Dalian, Liaoning province
  • Beijing (Winter Olympics and Paralympics sites)
  • Zhangjiakou, Hebei province (Winter Olympics and Paralympics sites)
  • Tianjin
  • Chongqing Municipality
  • Fuzhou, Fujian province
  • Xiamen, Fujian province
  • Hangzhou, Zhejiang province
  • Ningbo, Zhejiang province
  • Wenzhou, Zhejiang province
  • Huzhou, Zhejiang province
  • Shaoxing, Zhejiang province
  • Jinhua, Zhejiang province

Advantages of e-CNY
-Customer can use e-CNY through a single app for multiple use cases such as the e-commerce or any services rather than using multiple apps for various uses with extended security.

-A digital yuan can effectively reduce or eliminate fee-based transactions for users.

-A digitally tracking transactions, the PBOC can more effectively control the frauds and scammers.

-Crime detection and prevention can be maintained more easily by monitoring transactions can help to prevent counterfeiting or the illegal flow of funds, such as terrorist financing or money laundering.

-More accurate data collection will pave the way to improve the economy as per requirements by analyzing the data.

Disadvantages of e-CNY
-The major benefit of being anonymity is compromised here as the govt. can tract the transactions effectively.

-The existing payment system like WeChat or Alipay may have trouble with increasing competition though it will benefit in long term for more advanced technological development in the sector.

-There is always the same inflation, devaluation of the currency as occurs for the real cash currency as usual.

However, as a promising future aspects, there is an elephant in the room before e-CNY can expand in a large-scale across the world. Despite continuing to open up its financial sector, the mainland still imposes certain levels of capital control which should be removed to fulfill the dream of the he digital yuan to create an ecosystem of its own to make itself a payments currency in the global capital market.

Thanks a lot for reading my post. What about your thoughts, let me know in the comments. Thank you.
Have a nice day!


MD AL MAHADI HASAN Welcome to Mahadi's small corner in Hive Community from Bangladesh. He is a Ph.D. student who is working at a research Institute in China. He has visited many destinations near Beijing, climbs up the great wall and mountains, tries new and exotic dishes here, tried skiing and many other events, and explored his country and want to explore the rest of the world in the future. As a crypto enthusiast, he has the hobby to learn about Blockchains, Cryptos, and their fascinating applications in the real world. He loves learning new things and tries to enjoy his life to the full. If you like his content, don't forget to upvote and leave a comment to show some love for him as a learner in the blogging sphere. You can also reblog his post if you want to. Also, don't forget to follow him to be updated with his latest posts about his life and thoughts on a regular basis including daily life and some Blockchain games such as Splinterlands.





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6 comments
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Advantages of e-CNY
-Customer can use e-CNY through a single app for multiple use cases such as the e-commerce or any services rather than using multiple apps for various uses with extended security.

-A digital yuan can effectively reduce or eliminate fee-based transactions for users.

-A digitally tracking transactions, the PBOC can more effectively control the frauds and scammers.

-Crime detection and prevention can be maintained more easily by monitoring transactions can help to prevent counterfeiting or the illegal flow of funds, such as terrorist financing or money laundering.

-More accurate data collection will pave the way to improve the economy as per requirements by analyzing the data.

Disadvantages of e-CNY
-The major benefit of being anonymity is compromised here as the govt. can tract the transactions effectively.

Dear my friend @tanzil2024 !
Thank you for infor about e-CNY!
China seems to be trying to make the yuan an international currency like the dollar!
However, I guessed that e-CNY would be difficult to become an international digital currency in China, which does not guarantee anonymity of personal information!

From my point of view, Perhaps Hassan will not buy e-CNY!

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Indeed, they are trying and CNY is becoming stronger recently after the dip in the last couple of months. Also, CNY has the lowest inflation compared to most countries worldwide. They are trying to make it a widely accepted currency as they are lagging behind several currencies being the 2nd largest economy in the world.
Sure, I will not buy e-CNY as I have no need to buy it, but I will consider it if it allows international payment in the future. And for anonymity, I don't have any issue as I will not spend or get money from any illegal party of any relation with such illicit people, so this is not an issue for me for any digital currency from China, USA, or India. I like the fastest payment with zero fees everywhere as the banking systems have so many taxes and charges and also too many rules and regulations! Like in Bangladesh you can't pay more than $300 from your card to any international payment gateway except for some emergencies like air tickets and health-related costs but you need to get the allowance previously by contacting the bank. And so many charges with the higher rate. I don't like such systems!

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I like the fastest payment with zero fees everywhere as the banking systems have so many taxes and charges and also too many rules and regulations! Like in Bangladesh you can't pay more than $300 from your card to any international payment gateway except for some emergencies like air tickets and health-related costs but you need to get the allowance previously by contacting the bank. And so many charges with the higher rate. I don't like such systems!

Dear Hassan!
Unlike you, I don't live abroad!
So, I don't know much about the international payment method of cryptocurrency.

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There is very few way with cryoto for international payment! Only a few may be possible🤔

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