Former top manager of the NBK: The digital yuan is not in great demand among citizens

A former high-ranking official at the People's Bank of China (PBOC) deplored the low demand for the digital yuan among the people of China and called for more use of this state stablecoin. Xie Ping, former head of research at the PBOC, announced at a recent scientific conference that the total turnover of the state-owned digital coins in two years of testing was only 100 billion yuan (about $14 billion). According to Ping, this figure shows the extremely low use of CBDC.. Despite the fact that the PBOC digital currency has been repeatedly tested in various Chinese provinces, Ping believes that the results of the pilot project leave much to be desired. This is due to the fact that people have enough cash, bank cards and third-party payment systems.. They meet the needs and firmly formed the structure of China's payment market, says Ping.. The former top manager of the NBK is sure that people are too accustomed to existing tools, and it is difficult for them to get used to innovations. To make a difference, the digital yuan should be seen as more than just an alternative to regular money and used for more than just shopping. Former top manager of the NBK said that ordinary banks do not have commercial benefits from operations with the digital yuan. Whereas third-party payment services offer customers broader product lines, such as investments, insurance, and consumer finance. Therefore, Ping proposed expanding the use of the digital yuan, namely, so that individuals can use it to purchase financial products.. In this case, a large number of payment platforms will be involved, which will increase the use cases for CBDC as a result, Pin said. Recall that at the end of November, the Shanghai authorities held a free distribution of the state stablecoin among 7 million citizens, each of whom received 108 digital yuan worth about $15.