In Brief:
- e-CNY payment charges no transaction fee. It also does not restrict to the operation period of the high-value payment system.
- The people’s Bank of China issued the digital equivalent of physical renminbi known as the “E-CNY”.
As the world economies go digital, China debuts in CBDC payment with the first transaction of its digital fiat Currency, e-CNY or e-RNB in the domestic futures market. According to China Security Journal, the Dalian Commodity Exchange (DCE) has used e-CNY for the payment of storage fees to a delivery warehouse. Bank of Communications and Bank of China assisted the firm in making the payment.
Jiang Bin, manager of the delivery warehouse, said e-CNY payment charges no transaction fee. He further added that it is not restricted to the operation period of the high-value payment system. This would bring convenience to enterprises by showing real-time transaction progress.
The DCE said it plans to further promote business innovation. It seeks to expand the use of the digital yuan while ensuring a safe and stable operation in the market.
The Digital Yuan
The e-CNY, or digital yuan, is a centralized, cash-like digital currency. It would be primarily used for retail payments in China. According to the report, the application of e-CNY in the futures market provided an efficient, zero-cost and safe payment alternative for futures exchanges and market participants through real-time inter-bank payment.
China has launched e-CNY pilots in several cities since the end of 2019. Dalian joined the pilot in November 2020.
As of June 30 this year, there has been over 1.32 million scenarios of e-CNY application in covering utility payments, catering, transportation, shopping and government services.
China is pushing forward with its experiment in creating a digital version of the Yuan. It also gave foreign athletes and visitors a chance to use digital yuan at the 2022 Beijing Winter Olympics.
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