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China to explore digital yuan cross-border payment programs

July 17, 2021 2:34 am

China will explore possibilities for launching pilot schemes for using the digital yuan for cross-border payments, the central bank said in a paper published Friday.

Details:Technically ready for cross-border use, digital yuan is currently designed mainly for domestic retail payments, the People's Bank of China (PBOC) said in its latest white paper.

"Looking ahead, the PBOC will actively respond to initiatives of G20 and other international organizations on improving cross-border payments, and explore the applicability of central bank's digital currency in cross-border scenarios," the paper noted.

Foreign travelers to China will be able to use the government-developed digital yuan without a local bank account, according to the paper.

Context: The Chinese central bank has been committed to the development of a digital version of the renminbi, known as e-CNY, since 2014, and has conducted pilot trials in several major cities including Shenzhen and Shanghai.

As of the end of June, more than 20.87 million personal wallets and more than 3.51 million corporate wallets have been opened, with a transaction value of about 34.5 billion yuan ($5.39 billion).