eCNY

eCNY, also known as the digital yuan, is China’s central bank digital currency (CBDC) issued by the People's Bank of China (PBOC). It represents the digital form of the renminbi (RMB) and is legal tender for all public and private transactions in China. The initiative aims to provide a state-controlled digital payment instrument that operates alongside cash and existing electronic payment platforms.

eCNY uses a two-tier distribution framework. The PBOC issues digital currency to qualified commercial banks and select payment service providers, which then distribute it to individuals and businesses. Transactions can be conducted through official eCNY wallets, typically linked to bank accounts or mobile numbers, and can occur online or via offline modes, including contactless payments without network connectivity for limited periods.

The system is designed to be reliable and controllable, with the central bank retaining oversight to support monetary policy transmission and anti-money-laundering safeguards. It is intended to complement existing payment rails rather than replace them; users can exchange eCNY for cash or bank deposits as needed. There are separate personal and corporate wallets, each with appropriate limits and controls.

Adoption and scope have evolved through pilots in various cities and regions, expanding to more locales and use cases such as retail transactions, transportation, and government services. International usage remains limited, with ongoing trials and discussions about cross-border interoperability and broader testing.

The eCNY aims to improve payment efficiency, reduce cash handling costs, and enhance financial inclusion and policy transmission. Privacy and security considerations are addressed through design choices and regulatory oversight, balancing user privacy with regulatory requirements.