Cryptocurrencies have been doing fairly well throughout the past few years. As more and more people see the potential of cryptocurrencies, companies and countries as a whole have to adjust as well. Even now, the entire crypto market was able to reach a total cap of $2 trillion, and it continues to grow each day. And with the ways that the crypto market is growing, it would not have been possible without China.
China became the first safe haven for cryptocurrencies as a whole, as they allowed companies to mine crypto. In its prime, China accounted for over 40% of the total hash rate of Bitcoin. However, this monopoly could not last very long, as the country soon decided to ban crypto as a whole. And while they did state that the main reason why they did so was because of climate reasons, people were skeptical. And given that many citizens and businesses also depended on cryptocurrencies, the public did not take the ban very well.
Fortunately, citizens of one of the largest countries in the world will not have to wait much longer. China has released its very own cryptocurrency, which has proven to be a massive success. According to an official report by the Digital Currency Institute of the People’s Bank of China, individuals who are holding digital wallets have risen to 140 million.
Despite still being in a trial state, China’s CBDC was able to accumulate over 62 billion Yuan. What is even more impressive is that it was able to make so much through just 150 million wallets. The end of June saw an even bigger increase for the country’s CBDC, as transactions continued to increase by 525%, as another 24 million people downloaded and started to use the app.
The Hong Kong conference that occurred last year was a chance for the Governor of the PBOC to reveal how successful their pilot program has been. Exactly one year ago, the program saw that a total of 4 million transactions occurred throughout the four major cities of the country. But after a year, they revealed that the transaction volumes for the CBDC program rose by almost 3,000% that same year.
A major contributing factor to this rise in volumes happens to be the expanded scope of the program. Soon the CBDC was available in over 12 regions which included retail and the public of each region.
It is also worth noting that these wallets happen to be much safer as well, considering the fact that people provide less information when setting it up. Therefore, even if it does become compromised, hackers will not be able to find much.