In China's monetary system, M0 implies direct liability from the PBOC, while M1 and M2 include certain liabilities from commercial banks. Firstly, e-CNY will be a liability of the PBOC.Defining e-CNY as M0, rather than M1 or M2, has a number of implications: The PBOC chose to define e-CNY as cash in circulation, or as M0 in the language of central banks. It allows greater anonymity and includes better personal information protection, yet still keeps sufficient records for tracing illegal activities such as money laundering and tax evasion. The e-CNY is fully backed by the PBOC and put into operation by payment service providers. The second, more immediate goal is to reshape China's current payment system by providing a cash-like digital payment method: accessible to all, low cost, anonymous (to a certain extent), and which facilitates competition among payment service providers.

The first, longer-term goal, is to create a digital currency that can compete with other digital currencies such as bitcoins, stablecoins, and other central banks digital currencies (CBDC), while ensuring that the renminbi continues to be the dominant currency in China. The People’s Bank of China (PBOC), the central bank, and e-CNY operating institutions have conducted large scale e-CNY pilot programs in multiple cities over the past few months.Īccording to Deutsche Bank research, the PBOC's introduction of the e-CNY serves two different but related goals. The e-CNY, or digital yuan, is a centralized, cash-like digital currency that is expected to be primarily used for retail payments in China. Deutsche Bank’s research team examines the digital currency in detail and provides answers to common questions about e-CNY. Jingxi, JD’s social commerce platform, has covered tens of thousands of farms and helped farmers sell one million tons produce since the start of its operation in September 2019.Ī total of 120,000 rural households have been making use of the online platform to sell their quality products to more consumers.China’s answer to the cryptocurrency challenge, the e-CNY central bank digital currency, is set for rapid take-off on its expected launch in 2022. Zhang Yulin, a honey melon farmer in northwest China’s Gansu province, sold more than 6,000 kilograms of honey melons in the first week after his fruits went on sale on Jingxi last year. I wouldn’t have dreamed of this,” said Zhang.

Minqin, the county where Zhang lives, has undesirable natural conditions. More than 90 percent of the county is covered by desert. However, the sharp temperature disparity between daytime and night is conducive to growing sweet honey melon.īefore the country government partnered with e-commerce players like JD, local farmers depended on middlemen to sell fruit, which meant farmers often sell their melon at very low price. On July 27 last year, the county government signed a cooperation agreement with Jingxi to have the platform help local famers and businesses expand new market channels. Jingxi has been cooperating with over 200 industry clusters around China to make use of its strengths in online traffic, supply chain and livestreaming to digitalize rural businesses.Īmong the beneficiaries are orange farmers in Yichang, Hubei province. The pandemic took a toll on the fruit farmers-but after using the Jingxi platform, it took less than 20 days for one fruit store to fulfil over 40,000 orders. On the evening of May 31, 2023, JD.com officially launched the 618 Grand Promotion, the largest mid-year shopping festival in China.

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