China's central bank is expanding the use of digital yuan (e-CNY) in lottery draws, green electricity payments, and fiscal spending, sources say.
Banks are urged to boost cross-border usage, especially along Belt and Road routes, with new products like loans and letters of credit.
The move aims to reduce dollar dependency and ensure trade flows during geopolitical shocks.
Despite a small base—16.7 trillion yuan in transactions versus 279 trillion for UnionPay—ambitions are high. The PBOC provides policy incentives and tests smart contracts for automatic payments.
Local governments pilot salary and healthcare disbursements. Abroad, China promotes digital yuan for cross-border payments with ASEAN, but foreign adoption remains lukewarm.
