Digitalyuan usage has been “low and inactive,” former central bank official notes.
Trials of the digital yuan have produced disappointing results, according to a report quoting the former head of research at the Chinese central bank. The new form of national fiat has brought no benefits to the banks and should expand beyond being employed only as a substitute for cash, the banker believes.Usage of China’s central bank digital currency has been “low, highly inactive,” according to Xie Ping, former director-general of research at the People’s Bank of China .
“The cumulative circulation of the digital yuan in the two years of the trial has been only 100 billion yuan” , he detailed, quoted by the financial news outlet Caixin and Reuters. In his view, the application of the digital yuan needed to be widened. “The results are not ideal,” Xie concluded during the forum which was organized by the Tsinghua University. He emphasized that “what needs to change is the digital yuan acting only as a substitute for cash and only for consumption.”
The payment market structure formed by cash, bank cards, and third-party payment platforms are currently satisfying the needs for daily consumption in China. “The common people are used to it, and changing it is difficult,” he remarked.