Chinese Cryptocurrency Name and the Digital Yuan Transforming Finance in 2025
2025-07-17 08:50:36China is a leader in the Chinese blockchain and digital currency industry. The government launched the digital yuan through the People's Bank of China (PBOC). Also known as e-CNY or DCEP, the digital yuan is controlled by the PBOC, making it different from decentralized cryptocurrencies. By the end of 2024, the digital yuan was used for over $14 billion in transactions, accounting for 8% of store payments in major cities. This rapid adoption shows how quickly the digital yuan is growing in China. The system now includes e-CNY alongside many other projects within the Chinese blockchain and digital currency industry. The digital yuan, DCEP, and the PBOC play a key role in shaping the future of blockchain and digital currency in China. Blockchain and crypto technologies continue to drive innovation in the digital world, with the government and PBOC leading the Chinese blockchain and digital currency industry as digital currency gains greater importance in the country.
Digital Yuan and e-CNY
What Is e-CNY
The digital yuan is China’s official digital currency. It is also called e-CNY or DCEP. The People’s Bank of China, or PBOC, says the digital yuan is M0. This means it is cash that people use every day. The PBOC is responsible for it. The e-cny project wants to make payments in China more modern. It also wants to help people use less cash. The digital yuan does not earn interest, just like coins and bills. People can get e-CNY wallets with only a phone number. These wallets are not the same as bank accounts.
The PBOC uses a system with different levels for the digital yuan:
- Tier 1: The PBOC gives out the digital yuan and runs the system.
- Tier 2: Big banks and internet banks help people use e-CNY.
- Tier 2.5: Payment companies let people pay with e-CNY but cannot swap it.
- Bottom tier: Stores, companies, and people use e-CNY to buy things.
The digital yuan has several main goals:
- Make payments faster and safer for everyone.
- Help people in faraway places use money easily.
- Let the government watch payments in real time.
- Make it easier to trade with other countries.
- Help China’s economy grow and use new ideas.
How It Works
The digital yuan uses a two-level system. The PBOC gives the digital yuan to banks and other groups. These banks then give e-CNY to people. This way, the digital yuan can grow fast, but the PBOC stays in charge. Only banks can change e-CNY into bank money or the other way. This stops banks from losing their customers.
The e-cny project uses new technology to make paying easy and safe. The digital yuan can be programmed to do special things. It can use smart contracts and set rules for payments. This helps keep track of money and lets the government give rewards. The digital yuan also lets users hide their names from each other. But the police can still find out who did something wrong if needed.
Key Differences
The digital yuan is not like Bitcoin or Ethereum. The digital yuan is a central bank digital currency, or CBDC. The PBOC makes and controls it. It follows strict laws and wants to take the place of cash. Bitcoin and Ethereum are not controlled by anyone. They use blockchain and work between people. These cryptocurrencies can change in price a lot and have fewer rules.
| Aspect | Digital Yuan (e-CNY) | Decentralized Cryptocurrencies (Bitcoin, Ethereum) |
|---|---|---|
| Centralization | Centralized, issued and regulated by PBOC | Decentralized, no central authority, peer-to-peer networks |
| Regulatory Oversight | Strict regulatory framework, legal compliance | Less regulated, regulatory uncertainty |
| Stability | Stable, pegged to fiat currency | Highly volatile, price changes common |
| Technology | Two-tier model, may use blockchain-inspired features | Blockchain-based, consensus mechanisms like mining |
| Use Cases | Replace cash, payment efficiency, financial inclusion | Alternative finance, reduce intermediaries, investment |
The digital yuan and DCEP follow rules to stop crime and make sure taxes are paid. The e-cny project helps China build a digital economy. The digital yuan does not use blockchain at the PBOC level. But it may use some blockchain ideas for safety and tracking. The digital yuan helps China keep control of its money and supports digital growth.
Digital Yuan Adoption
Use Cases
In many Chinese cities, people use the digital yuan every day. The government pays public workers with digital yuan. Cities like Changshu and Taicang pay all workers this way. Civil servants and builders get their pay through digital currency electronic payment. The digital yuan helps with rent and other public services. Smart contracts make these payments safe and automatic. In some places, people use digital yuan for buses, school lunches, and rent. Smart schools let students pay for lunch with face-recognition. They do not need a password. These changes show more people are using digital payments in China.
The digital yuan is used in smart city projects too. Government apps let people pay for services with digital currency. This means people do not need other apps. Payments are faster this way.
Financial Inclusion
The digital yuan lets more people join the digital economy. In the countryside, more people use digital payments now. Digital payments there almost doubled in one year. They are close to city levels. Internet banks like WeBank and MyBank give small loans to people and businesses. They use technology to approve loans quickly. Most loans do not need anything as collateral. AI-powered apps help people sign up for the digital yuan. Even people new to digital payments can use it. Training tools teach users how to use digital currency safely. These changes help close the gap between cities and the countryside. But some places still do not have good internet or digital tools.
Payment Platforms
China’s big payment platforms, Alipay and WeChat Pay, now use the digital yuan. Alipay added e-cny in 2021. WeChat Pay added it in 2022. The e-cny app lets people pay with QR codes. This works like other payment apps. The People’s Bank of China wants one QR code for all digital payments. This would make it easier for everyone to use digital yuan anywhere. The e-cny app also lets people pay offline. This helps people in the countryside or those without smartphones. More people are starting to use digital currency. These steps show digital currency is becoming normal in China.
Chinese Crypto Projects
Top Projects
Many Chinese crypto projects are important in the digital world. These projects help shape the chinese blockchain and digital currency industry. The table below lists some top projects, their features, and who they work with.
| Project | Key Features & Innovations | Market Cap (approx.) | Notable Applications & Partnerships |
|---|---|---|---|
| VeChain | Decentralized logistics and supply chain management; dual tokens ($VET, $VTHO); strong strategic partnerships with Walmart, BMW, Bayer | $2.5 billion | Supply chain tracking for consumer goods, medicine, groceries |
| Conflux | Unique Tree-Graph consensus (hybrid PoW/PoS); supports Dapps and DeFi; stablecoins pegged to yuan and HKD | $750 million | Dapp deployment, DeFi projects |
| NEO | Ethereum alternative with dBFT consensus; supports multiple coding languages; stable development infrastructure | $780 million | Smart contracts, Dapp development |
| Huobi | Major centralized exchange since 2013; wide product range including derivatives and OTC markets | N/A | Largest trading ecosystem in China |
| Filecoin | Decentralized cloud storage; P2P storage network; unique consensus; $FIL token used for payments | $2.5 billion | Cloud storage disruption |
| Qtum | Hybrid UTXO + EVM model; smart contract ecosystem; business-friendly development tools | Moderate | Tailored decentralization solutions for businesses |
| Ontology | Multi-chain interoperability; encrypted IDs and reputation tracking; customizable developer tools | Declining | Data privacy, identity management |
| BytomDAO | AI-driven governance concept; focus on generative AI for ecosystem management | Low | AI governance experimentation |
| Nervos CKB | Quantum-resistant chain; custom VM on RISC-V; flexible and secure development environment | Stable and growing | Security-focused blockchain development |
| Wanchain | Cross-chain interoperability focus; slower feature rollout | N/A | Cross-chain data sharing |
VeChain, NEO, and Conflux work with big companies around the world. These projects help the digital world grow and bring in more crypto investments.
Innovation
Chinese crypto projects bring new ideas to blockchain. VeChain uses Internet of Things devices to track goods right away. NEO lets people use many coding languages to make apps. Conflux uses a special Tree-Graph system for fast and safe transactions. Nervos Network works with China’s Blockchain-based Service Network to make things safer and bigger. These projects show how the chinese blockchain and digital currency industry uses technology to fix real problems.
Many new chinese crypto projects focus on digital identity, data privacy, and AI-driven governance. These new ideas help the ecosystem stay strong and bring in new investments.
Global Role
Chinese crypto projects are important in the world crypto market. They start new trends and fix problems for the global blockchain world. Cities like Beijing and Shanghai help with blockchain growth and talent. Projects like VeChain and Conflux help with trade between countries and faster payments. The government helps blockchain with national plans and research. This support helps China lead in digital technology and crypto investments.
- Chinese crypto projects grow in other countries and work with global partners.
- They help make payments between countries faster and safer.
- The ecosystem in China helps shape the future of the digital and crypto market everywhere.
Privacy and Regulation
User Privacy
The People's Bank of China made the digital yuan with privacy in mind. The system uses "controllable anonymity" to protect users. For small payments, people only need a phone number to get a wallet. These phone numbers link to government IDs. But Chinese law stops phone companies from sharing this with others, even the PBOC. So, the PBOC cannot see who owns these wallets for small payments. There are limits to this privacy. People can only spend up to 2,000 RMB at once with these wallets. If they want to spend more, they must give more personal information. The digital yuan hides payment details by using encryption. This keeps the sender's name secret from the person getting paid. The system gives more privacy than many old payment ways. But if the government thinks someone broke the law, they can still track payments. This helps keep users safe and stops crime.
State Control
The PBOC and the government watch all digital yuan payments closely. Every payment is saved in one big database. The government knows who spends money, what they buy, and where they shop. This lets the PBOC freeze accounts if they see something wrong. The digital yuan does not use third-party banks, so the PBOC has full control. The system can even make digital money expire after some time. This makes people spend money faster and helps the economy. Some people worry about privacy because the government can see every payment. The PBOC and China's central bank use these tools to stop money laundering and tax cheating.
| Aspect | Description |
|---|---|
| Controllable Anonymity | The PBOC collects less user data for small payments but can find out who someone is if the police need it. |
| Regulatory Authorities | The People's Bank of China and the China Banking and Insurance Regulatory Commission watch over the system. |
| Monitoring | The government uses real-time data and big data tools to find suspicious actions. |
| KYC Implementation | The PBOC sets spending limits and uses data to stop criminals from hiding illegal money. |
Global Impact
China wants the digital yuan to be important in world finance. The PBOC works with other countries to make sending money across borders faster and cheaper. Now, a payment from Hong Kong to Abu Dhabi takes only seven seconds and costs less. The digital yuan helps with projects like the Belt and Road Initiative. Countries in Asia and Africa can use the digital yuan for trade and building things. The PBOC also joins projects like mBridge to work with other central banks. But there are still problems. Strict rules and trust issues make it hard to use the digital yuan outside China. Many countries still like the US dollar because it is stable and easy to use. The PBOC keeps working to make the system better and hopes the digital yuan will help build a new global payment network.
China’s digital world is changing how people use money. Big crypto projects and payment apps help millions of users every day.
- More than 100 million people in China use digital wallets to pay for things.
- The digital system lets people send money to other countries and sets new rules for global finance.
- Some experts think digital currencies could compete with the U.S. dollar and let more people join the digital economy.
These changes show that finance is becoming more open and creative for everyone.
FAQ
What is the main difference between the digital yuan and Bitcoin?
The digital yuan is made by the People’s Bank of China. Bitcoin does not have one owner or leader. The digital yuan keeps its value steady. Bitcoin’s price goes up and down a lot. The government is in charge of the digital yuan. Bitcoin uses a public blockchain for all its work.
Can people outside China use the digital yuan?
Some people outside China can use the digital yuan in test programs. Most people who use it live in China now. The government wants more people in other countries to use it soon. Some trade projects already use the digital yuan for buying and selling.
How does the digital yuan protect user privacy?
The digital yuan uses "controllable anonymity" to keep users safe. For small payments, only a phone number is needed. The system hides names from other users. The government can see details if someone breaks the law.
What are some top Chinese crypto projects?
- VeChain helps track goods in supply chains.
- NEO lets people make smart contracts.
- Conflux makes payments fast and easy.
- Nervos works to keep things safe. These projects work with big companies and help the digital economy grow.
Will the digital yuan replace cash in China?
The digital yuan tries to help people use less cash. Many people still use coins and paper money. The government wants more people to try digital payments. Cash and the digital yuan will both be used for a long time.