The People's Bank of China (PBC) has added eight more entities to the network of banks authorized to operate with the digital yuan, bringing the total number of enabled operators to 30.
This expansion includes Ping An Bank, Hengfeng Bank, Bohai Bank, Shanghai Bank, Hangzhou Bank, Huishang Bank, Changsha Bank, and Guangxi Beibu Gulf Bank, which become part of the group of banks permitted to conduct transactions with the Chinese digital currency.
The central bank justified the measure by the need to "sustainably develop the digital yuan," extend the reach of services linked to this currency, and continuously meet the public demand for "safe, convenient, and efficient" financial services.
At the same time, the institution emphasized that it will continue to gradually and orderly increase the number of operational entities, following "market principles and legality," with the aim of stimulating the initiative and innovative capacity of market participants and fostering an open, inclusive, and equitable competitive environment for the expansion of the digital yuan.
This is the second major wave of additions to the list of authorized banks, after around a dozen financial entities were added in March to the ten banks that initially received the green light to operate with the digital yuan.
China began testing the digital yuan in 2019, positioning itself among the first major economies to experiment on a large scale with a central bank digital currency. Since then, its use has been expanding from retail payments and payroll deposits to administrative procedures, corporate operations, and certain cross-border payments.
However, the 'South China Morning Post' notes that the implementation of the digital yuan in retail trade is progressing slowly, as many consumers continue to opt for payment solutions like Alipay and WeChat Pay, which forces Beijing to face the challenge of promoting a broader use of its central bank digital currency.