China Digital Yuan CBDC 2025: Adoption Metrics, Pilot Cities and Cross-Border Payment Integration
The People's Bank of China (PBOC) launched the digital yuan (e-CNY) pilot program in 2020 and has since expanded it to over twenty-six cities and provinces, covering approximately four hundred million wallet users. The e-CNY supports both retail payments and programmable smart contract features, with total cumulative transactions surpassing CNY 7 trillion by early 2025. Cross-border payment trials with Hong Kong, Thailand and the UAE through the mBridge project signal China's ambition to establish the digital yuan as a vehicle for international settlement alongside the existing yuan clearing system.
TL;DR
The digital yuan (e-CNY) reached over 400 million wallet holders across 26 pilot regions by early 2025, with cumulative transactions exceeding CNY 7 trillion. The mBridge cross-border CBDC bridge completed successful pilots with Hong Kong, Thailand and the UAE. The PBOC continues expanding programmable payment features for government subsidies, transportation and e-commerce use cases.
Key Insights
Wallet Users
Over 400 million digital yuan wallets have been opened across pilot regions, with personal wallets comprising the majority and corporate wallet adoption growing rapidly among state-owned enterprises.
Cumulative Transactions
Total e-CNY transaction volume exceeded CNY 7 trillion by early 2025, with retail payments, government subsidies and public transportation representing the largest use categories.
Pilot Regions
The digital yuan operates in over twenty-six pilot cities and provinces, including Shanghai, Shenzhen, Beijing, Chengdu and the entire Greater Bay Area, with plans for nationwide rollout pending evaluation results.
mBridge Partners
The mBridge cross-border CBDC platform connects China, Hong Kong SAR, Thailand, the UAE, Saudi Arabia and the BIS, enabling real-time cross-border settlement without correspondent banking intermediaries.
Side-by-Side Comparison
| Metric | e-CNY (China) | Digital Euro (pilot) | Sand Dollar (Bahamas) | DCash (E. Caribbean) |
|---|---|---|---|---|
| Launch year | 2020 (pilot) | 2023 (pilot) | 2020 | 2021 |
| Wallet users (millions) | 400+ | Limited pilot | 0.2 | 0.1 |
| Cumulative transactions | CNY 7T+ | Test phase | BSD 15M | XCD 8M |
| Cross-border capability | mBridge pilot | Not yet | Limited | Not yet |
| Smart contract support | Yes | Planned | No | No |
Frequently Asked Questions
Unlike Alipay and WeChat Pay, which are private payment platforms using commercial bank deposits, the digital yuan is direct central bank liability, meaning it carries no credit risk. The e-CNY also supports offline payments without network connectivity and programmable smart contracts for conditional payments like government subsidies.
mBridge (Multiple CBDC Bridge) is a BIS-backed platform enabling real-time cross-border payments using CBDCs. It connects central banks in China, Hong Kong, Thailand, the UAE and Saudi Arabia, reducing settlement times from days to seconds and eliminating intermediary correspondent banking fees.
The PBOC has stated the digital yuan is intended to complement, not replace, physical cash. Cash remains legal tender and the central bank continues to issue banknotes. The e-CNY primarily targets digital payment scenarios, government disbursements and cross-border settlement use cases.
The digital yuan supports conditional payments through smart contracts, including time-limited spending for government consumption vouchers, transportation subsidies that can only be used for public transit, and payroll disbursements with usage restrictions. Municipal governments have used these features extensively for stimulus programs.