Amid the World Trade War and President Donald Trump's unprecedented tariffs, the Chinese yuan has waned to a multi-year low on the US dollar.
To protect the Fiat currency, the People's Bank of China (PBOC) has responded with positive media torrents about financial interventions and original use.
If PBOC data is trusted nine months before March 11, 2025, the unique personal wallet of that digital source (E-CNY) 4x From 180 million to 800 million, the cumulative transaction volume rose 45% from 7 to 10.2 trillion E-CNY.
The US has reversed most of its sudden tariffs in dozens of countries, but Trump insisted on raising tariffs on Chinese goods. Within the past few days, US tariffs on Chinese imports have risen to 104% on the step function, then 125%, and now 145%.
In response, China has already collected retaliatory tariffs on US imports. PBOC has also asked lenders to reduce their USD purchases.
However, even PBOCs could not counteract the bearishness in the Forex market. this week, Originally, it was down to its lowest level in 17 years. 7.3498 CNY per USD.
China defends the Yuan and publishes record-breaking CBDC statistics
PBOC's claims about the use of record-breaking digital sources are difficult to believe for many reasons. Not only is the state-controlled media notorious for exaggerating national statistics, it also has all the motivations to project trust in Fiat currency during the April 2025 trade war.
Certainly, Trump is aiming straight for China in his tariff war, imposing the toughest tariffs of major countries on exports to US consumers.
Read more: China has problems with fake wallets copying digital yuan
The PBOC also has an incentive to boast about the record-breaking use of CBDC amid concerns that the government will use E-CNY to track and control how citizens spend their money. Most mainland digital wallets are tied directly to citizens' digital ID cards.
At this point, China is certainly looking for statistics that will make the yuan and its associated CBDC look strong amid the US trade war and the decline in Fiat currency.
PBOC is also expanding its CBDC-related functions. Features have been added, such as the ability to scan QR payment codes and send transactions, even when offline.
We have also expanded the number of locales accepting CBDCs, including allowing E-CNY payments for public transport.
