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China will soon kick off its 2023 Financial Service Trade Fair, aggressively promoting the digital yuan. Beijing will host the event in September to boost innovation and growth in the financial sector, with JD.com as a frontrunner.
Local reports noted that JD Technology, the tech arm of JD.com, will team up with the Industrial and Commercial Bank of China (ICBC). They will unveil a full suite of digital renminbi-based supply chain financial solutions.
China Continues to Advance Digital Yuan CBDC Adoption
Local news outlet underlines that JD’s partnership with ICBC will release a digital yuan programmable supply chain solution. It will be based on digital renminbi smart contracts.
Notably, JD Technology has been one of the early adopters of the Chinese CBDC. It has reportedly collaborated with the Institute of Digital Renminbi on pilot projects to accelerate its adoption.
launched the first e-commerce platform to accept digital renminbi in December 2020. It has registered nearly 15 million users and opened close to 20 million digital wallets. The report notes that the total transaction volume exceeds 3 billion yuan with a compound annual growth rate of over 100%.
Take a look at India’s CBDC here: Digital Rupee (e-Rupee): A Comprehensive Guide to India’s CBDC
During the fair, JD Technology plans to reveal diverse applications for the digital renminbi, from retail consumers to real-world industries and financial institutions. Various promotional activities, including digital renminbi coupons and instant discounts, will also be part of the event.
comprehensive supply chain financing service will reportedly address identity verification and risk identification hurdles.
Overall Adoption is Low Despite Increasing Volumes
The Atlantic Council recently highlighted that 130 countries are researching the development of central bank digital currencies. Despite China’s digital renminbi being relatively new, the adoption has been less than expected.
PointPay CEO Vladimir Kardapoltsev tweeted last month,
“China’s digital currency (CBDC) e-CNY has been used for transactions worth $250 billion over 1.5 years since its creation.”
He noted that the figure is only 0.16% of China’s money supply. Kardapoltsev added, “Currently, e-CNY is primarily used for domestic retail payments, with low adoption among the population.”
But, recent local reports note that the digital renminbi has been steadily gaining traction.
Over 2,700 transactions, amounting to 257,800 yuan occurred in just the first seven months. Government and enterprise communication services reportedly settled transactions exceeding 200 million yuan.
