China's digital yuan failed to accumulate significant amount of money that would threat the financial sector so far, Bloomberg reports, citing Mu Changchun, Head of the Digital Currency Institute at the People's Bank of China. According to the report, the balance in digital yuan wallets reached the $74 million mark, which is 0.00545% of the total cash in circulation in China.
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Mu added he does not expect that digital yuan will have a significant "negative disintermediation effect" on the economy, and the digital currency will also enhance financial inclusion. He also said the regulator will continue to advance pilots with no timetable for official launch.
The People's Bank of China also plans to convert all the digital currency for cross-border operations so that it could minimize risks such as currency substitution. The regulator started public testing in April 2021. The digital yuan is designed to move instantaneously in both domestic and international transactions. It also aims to be cheaper and faster than existing financial transactions.
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