Chinese Workers Convert Digital Yuan to Cash Amid Skepticism in State Trial

May 13, 2024, 10:36 AM

In China, a significant trend has emerged among workers who are part of a pilot program receiving their salaries in the digital yuan, or e-CNY. Despite the government's push for digital currency, these workers are converting their digital wages into physical cash almost immediately after receiving them. This behavior has been highlighted in a report by the South China Morning Post and further evidenced by the fact that even with $250 billion worth of transactions, the digital yuan is not retaining its hold as a preferred mode of transaction. Skepticism about the Central Bank Digital Currency (CBDC) remains strong, and the trial involving state employees has not been successful in popularizing the digital yuan.