China's Digital Yuan Isn't Taking Off Despite State Employee Salary Trial: Report
Summary
China's digital currency, the e-CNY, is not gaining popularity during a trial where state employees are paid in the central bank digital currency (CBDC). Many recipients are transferring the digital yuan to their bank accounts to use as cash. The lack of interest and limited places to use the e-CNY are cited as reasons for this behavior. China has been testing the e-CNY since 2019, but there is no set date for a nationwide launch. The CBDC also raises privacy concerns due to its blockchain technology that makes transactions traceable. As a result, consumers prefer using online payment tools like Alipay and WeChat Pay or physical cash.
