According to Apollo News, a recent video from a noted Chinese finance expert has disclosed that China’s central bank plans to eliminate high denomination banknotes by 2025.
In footage circulated on social network platforms, Lu Dingjie, a Chinese finance expert, said the country’s central bank has a timetable to eliminate large paper bills by 2025. He said that 100 and 50 yuan bills might not be in circulation then.
China currently has six banknotes of denominations 1, 5, 10, 20, 50, and 100 yuan in circulation.
He also said that now the central bank is promoting digital currency, people should start using digital currency.
Lu noted that when using digital currency, not only users are being tracked on how they spend their money via the digital system, but also the source of money they earn has to be disclosed.
China officially introduced the digital yuan in 2020 as an effort to challenge U.S. dollar dominance.
China began to develop digital currencies in 2014. China’s central bank in 2017 set up a digital currency research institute.
The Wall Street Journal reported that the central bank has been carrying out small-scale rollout trials of digital yuan since late 2019.
In April 2020, the Central Bank of China and the Monetary Research Institute of the People’s Bank of China announced that they would launch the first closed test of the digital yuan in Shenzhen, Suzhou, Chengdu, and Xiong’an around Beijing. Beginning in May 2020, some government employees’ wages were partially paid in digital currency.
Since early 2022, the authorities have stepped up to promote the digital yuan on a wider scale. Apollo News said that as of December 31, 2021, there had been about 8 million digital yuan trial points of sale in China, with 261 million personal wallets and a transaction amount of nearly 90 billion yuan.
According to the Wall Street Journal, during the Beijing Winter Olympics, the volume of transactions using digital yuan exceeded that of Visa cards for one day. At the Winter Olympics, China introduced trials of soft wallets and hard wallets, and other transaction methods using its digital currency.
Seven major sectors are under the trial digital yuan plan: transportation, catering and accommodation, retail, travel and tourism, health care, communication services, and ticketing and entertainment.
As of January 4, 2022, the trial version of the digital yuan app has been expanded to 35 banks, including joint-stock banks, city commercial banks, and rural commercial banks.
Tang Jingyuan, a commentator on current affairs in the United States, once pointed out that, unlike other cryptocurrencies, the digital yuan is not an independent currency. It is nothing more than the virtualization of the Chinese yuan (CNY), issued and controlled by the China central bank. Therefore, the digital yuan is controlled by the Chinese government in its system.
Tang Jingyuan said that once the digital yuan is fully promoted, every capital transaction of every individual in the system will be under the supervision of the central bank. He said that the Chinese regime is testing the extent to which it controls the activities of citizens’ assets.