Digital Yuan Included in China's Official Money Supply for the First Time

[Asia Economy Reporter Hwang Seoyul] The digital yuan (e-CNY) has been included in the official money supply of Chinese banks for the first time.

On the 12th, Hong Kong's South China Morning Post (SCMP) reported that the People's Bank of China, the central bank, has included the digital yuan in the official money supply for the first time.

The People's Bank of China announced on the 10th that as of the end of December last year, 13.61 billion yuan (approximately 2.5 trillion KRW) worth of digital yuan was in circulation, accounting for 0.13% of the monetary base (M0).

China began research on legal digital currency in 2014 and has been conducting pilot projects for the digital yuan with residents in selected pilot cities since the second half of 2019.

As of the end of August last year, the cumulative transaction volume of digital yuan through consumer spending, bank loans, and cross-border transactions exceeded 100 billion yuan.

However, the People's Bank of China stated that "the digital yuan pilot project will continue steadily," but did not confirm an official launch schedule.