Beautiful Virgin Islands

Tuesday, Jun 03, 2025

China Release White Paper on CBDC: $5.4B Settled, Smart Contracts Enabled

China Release White Paper on CBDC: $5.4B Settled, Smart Contracts Enabled

China’s central bank's CBDC, Digital Yuan is moving fast towards its deployment. For the first time since the project was launched over 7 years ago in all quietness, the People’s Bank of China (PBoC) released a Whitepaper with the digital Yuan or e-CNY’s most important progress.

According to the document, originally the project was response to cryptocurrencies, such as Bitcoin, in a new world context with a digital economy. Couple years ago, the only about half of people were using cash in China. People started paying for things via mobile payment services such as AliPay and WeChat Pay, a poll conducted by the financial institution shows.

According to the survey, 46% of the participants used no cash with digital and mobile payments accounting for over half of the transactions conducted during this period. Now that there was a clear change in the citizens’ payments habits and preferences, the PBoC could re-allocate the resources normally used in cash management to be employed for other sectors.

The Chinese government views digital assets, such as Bitcoin, as speculative instruments, tools to gain anonymity, and to be used in illegal activities. The government believes that BTC, ETH, and others, “lack intrinsic value” and can’t be used as currencies.

The Chinese central bank started the e-CNY project to launch a digital version of a fiat currency run by “authorized operators”. The CBDC will work as a hybrid payment instrument with legal tender status.

The central bank explained that the e-CNY will have the “basic functions of money” (unit of account, medium of exchange, store of value).

“The issuance and circulation of e-CNY is identical with physical RMB, while the value of the former is transferred in a digital form. Thirdly, e-CNY is the central bank’s liabilities to the public. Backed by sovereign credit (…).”

In the white paper, PBoc revealed some of the CBDC’s main features, such as smart contracts, private transactions, and clarified that the digital currency will co-exist with the physical form of Yuan.


The e-CNY white paper also comes with a number of statistics and defining characteristics that make it different from the likes of bitcoin (BTC) and stablecoins. The paper claims more than 20 million digital yuan wallets have been created thus far, and $5.4 billion or 35.5 billion yuan has been settled on the e-CNY network.

Smart Contracts And China’s CBDC
According to the central bank their CBDC will be able to carry out automatic payment transactions. Similar to a smart contract on a private blockchain, e-CNY can make transactions once certain conditions are met.

China is driving new business models and promoting future innovation. In term of privacy, the digital Yuan will have controllable anonymity and users will be able to keep part of their data hidden from other, but the PBoC will hold complete supervision.

The white paper states that the CBDC has successfully completed its top-level design, function development, and system testing. As such, the PBoC has been able to move to a system testing phase in “representative regions”.

An official rollout date for the e-CNY has not yet been decided or at least announced. The central bank still needs to determine the level of privacy of the transactions, but many speculate on the possibility that the CBDC will be a big part of the Beijing 2022 Winter Olympics.

China’s digital Yuan has received criticism. Many fear that the e-CNY will be used to excess further control on the country’s population and gain more control over their financial independence, which isn’t really ‘China only’ issue.

A founder partner at Primitive Crypto, Dovey Wan, believes the launch of the digital Yuan or e-CNY will mark the beginning of a conflict between two sides. One could be represented by Bitcoin and BTC holders, the other by e-CNY users.

She commented:

“The fight between absolute sovereign power vs most robust meta sovereign power will mark the start of a major upheaval in our monetary universe.”

Source: China Release White Paper on CBDC: $5.4B Settled, Smart Contracts Enabled – Fintechs.fi

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
×