The digital yuan, commonly known as China’s central bank digital currency (CBDC), was advanced during the Lunar New Year to boost its adoption.
The Global Times said that Chinese towns unveiled digital yuan initiatives worth more than $26.6 million. These initiatives featured subsidies, spending coupons, and other things during the Lunar New Year holiday season.
Over 200 events featuring digital yuan reportedly took place in China. As noted in the report, Jinan and Lianyungang in the Shandong and Jiangsu provinces distributed digital yuan coupons during the Lunar New Year. Furthermore, Shenzhen in the Guangdong province issued 100 million yuan in digital currency to support the catering industry.
China is promoting the widespread use of its centralized digital currency by expanding its trial program to more areas. The People’s Bank of China reported at its 2023 Working Conference that the CBDC trial is progressing well.
Huang Yiping, the ex-PBOC monetary policy member, sees private stablecoin issuance as sensitive but necessary to weigh the pros/cons despite the personal crypto ban. China banned crypto mining in Sept. 2021 as part of its goal to become carbon neutral by 2060. The coal mining and disposable plastic cutlery industries suffered from the restriction.
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After the Chinese New Year, stocks and cryptocurrencies declined, according to BeInCrypto analysis, unlike past responses. Currently, the global crypto market cap is around $1.1T, with Bitcoin trading from $22,648 to $23,404 on CoinGecko.