Digital Yuan
China’s central bank digital currency, a digital form of the yuan issued by the People’s Bank of China for everyday payments.
The Digital Yuan, also called e-CNY, is China’s central bank digital currency. It is a digital version of the yuan issued by the People’s Bank of China, rather than a privately issued cryptocurrency like Bitcoin or a bank-run payment balance. It is designed to function as legal money in digital form, with wallets provided through approved banks and payment apps. Unlike many cryptocurrencies, it is centralized, permissioned, and its value is intended to match the regular yuan one-to-one.
It matters because it shows how governments can use blockchain-inspired ideas, digital wallets, and real-time settlement without creating an open crypto network. People can use it for retail payments, transit, salaries, or government benefits where supported. For example, paying with Digital Yuan can feel similar to using a mobile payment app, but the underlying money is a direct claim on the central bank rather than a balance held by a private payment company or commercial bank.
Other terms in CBDCs
CBDC
A central bank digital currency is digital money issued by a country’s central bank and designed to function as official legal tender.
Digital Euro
A digital euro is a proposed central bank digital currency that would let people and businesses use euro-area central bank money electronically.
Retail CBDC
A retail CBDC is digital central bank money designed for everyday use by the public, similar to digital cash.
Wholesale CBDC
A wholesale CBDC is central bank digital money designed for use by banks and other financial institutions, not the general public.