China has included its Central Bank Digital Currency (CBDC) in its list of circulating currencies

The People’s Bank of China (PBoC) has made a historic move, becoming the first central bank in the world to include its own central bank digital currency (CBDC) in reports measuring the amount of cash in circulation. According to the report, 0.13%, amounting to approximately two billion dollars in value, of the 10.47 trillion yuan in circulation at the end of the year was the CBDC, also known as e-CNY.

The PBoC noted that while the total currency in circulation reportedly grew at a rate of 15.3% in December, adding e-CNY to its annual figures had not caused “notable changes” to growth rates. China is one of the earliest adopters of CBDC, introducing it to the economy in April 2020, and has since announced its plans to expand the usage of e-CNY. However, total digital currency transitions in the economy were as low as 14 billion dollars at the end of October 2022, suggesting a slow rate of adoption.

The PBoC’s move marks a significant shift in the global financial landscape, as it signals the rise of digital currencies as a legitimate form of payment. The inclusion of e-CNY in the central bank’s report also highlights China’s commitment to the development and adoption of CBDCs, and could potentially pave the way for other countries to follow suit.

Overall, the PBoC’s move is a major milestone in the world of digital currencies, and could have far-reaching implications for the global economy. As China continues to lead the way in the development and adoption of CBDCs, it will be interesting to see how this emerging technology is embraced by other countries in the near future.