Nearly 1 in 5 Chinese have e-CNY wallets

Thursday 23 June 2022 15:06 CET | News

People’s Bank of China has confirmed that about one-fifth of the Chinese population had set up e-CNY (digital yuan) wallets.

As Nocash presents, the financial sector, both in China and abroad, is interested in how quickly consumers in a large economy will adopt a central bank digital currency, or CBDC. For their part, other countries’ governments — 79 of which are in the process of researching, developing or deploying their own CBDCs — are observing the e-CNY pilot to see how quickly government-sponsored digital money might replace both cash and private forms of digital money.

A combined 44% of Chinese adults say they don’t use the e-CNY app because they either don’t need it (27%) or prefer using another form of digital payment (17%). But another 26% say they don’t use it because they don’t know how, and 13% cite technical barriers like not residing in a pilot city (9%) or not having a smartphone that supports the app (4%). This paints a different picture, one in which investments in educating consumers on its use and rolling the pilot out more widely could result in large gains in user uptake.

Of those who said they downloaded the e-CNY app (n=186), the largest shares use it for online shopping (72%) and paying for public services, such as public transportation (67%). This makes sense considering the incentives offered under the pilot schemes, which have included discounts from online merchants and on public transit.

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Keywords: CBDC, digital currency, digital wallet, central bank
Categories: DeFi & Crypto & Web3
Countries: China
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DeFi & Crypto & Web3