China’s Digital Yuan Gains Momentum During the Spring Festival

China has recently launched over 200 activities involving its digital yuan (CBDC) during the Spring Festival, one of the largest holidays in the country. The local governments of Shenzhen, Jinan, Lianyungang, and Hangzhou have distributed 180 million yuan ($26.5 million) worth of digital yuan coupons to boost its adoption. The citizens of Hangzhou were the most interested, taking all the provided funds in less than ten seconds. During the Singles Day shopping festival, JD.com allowed customers to settle bills in e-CNY, and more than 100,000 people took advantage of the offering. The number of digital yuan wallets in China has reached 140 million at the end of 2021, and transactions have surged to $13.8 billion. During the 2022 Winter Olympic Games, athletes and visitors used over $300,000 worth of e-CNY every day. This initiative triggered tension between China and the USA, with Senators Marsha Blackburn, Roger Wicker, and Cynthia Lummis urging the US Olympic Committee to prohibit the usage of the e-yuan. The Chinese Foreign Ministry requested that Americans “abide by the spirit” of the games and not involve with monetary products they are not aware of.