PBOC Tests Digital Currency At Winter Olympics, US Worries China Controls Global Transactions

China introduces digital yuan at the 2022 Beijing Winter Olympics. (photo: @Beijing2022)

JAKARTA – China's new digital currency, e-CNY, has so far been used to make payments of 2 billion yuan (IDR 4.2 trillion) or more per day in its latest trial at the 2022 Beijing Winter Olympics. This statement was made by a high-ranking official from the Central Bank of China (PBOC), on Tuesday 15 February.

China's digital currency, e-CNY, was introduced at the Winter Olympics in Beijing. Strict monitoring of its implementation is still being carried out by the Chinese government.

In this latest trial, athletes, coaches, and media from around the world can all use it via a smartphone app, physical payment card or wristband.

"I have a rough idea that (there are) a few, or several million RMB (yuan) payments every day, but I don't have an exact figure yet," said Mu Changchun, director-general of the PBOC's Digital Currency Research Institute, as quoted by Reuters.

He also said there were no details yet on the share of transactions made by Chinese nationals and international participants, although some clear trends had emerged.

"It seems that all foreign users use hardware wallets," Mu said, referring to the e-CNY payment card, which looks like a normal chipless credit card and magnetic stripe. "The software wallet is mainly used by domestic users."

The state-controlled commercial bank, the Bank of China, has also set up a number of special automated teller machines (ATMs) at several central venues at the Olympics, within a "closed circle" of teams, officials, and organizers.

Through the ATM, banknotes of foreign currencies can be inserted into it and converted into ordinary e-CNY or yuan banknotes. However, the availability of e-CNY at the Olympics has raised some concerns about cybersecurity and data protection.

US Republican Senator and Vice-Chair of the Senate Select Committee on Intelligence, Marco Rubio, sent a letter to the administration of US President Joe Biden last month asking what steps are being taken to ensure athletes are protected from "surveillance and manipulation", which labels the digital yuan as "overwhelming" as a security threat to individual users".

One of Britain's top spy chiefs, Jeremy Fleming, also said in an interview with the Financial Times in December that, while digital currencies present a great opportunity to democratize payment systems, the technology could allow Beijing to monitor users and exercise control over global transactions.

Meanwhile, the PBOC said it attaches great importance to the protection of personal information in the use of e-CNY. PBOC Governor Yi Gang said in November that the bank collects "minimal and necessary" information in e-CNY applications, and strictly controls the storage and use of personal information.