Yuan hits 17-year low as China touts digital currency amid trade war

According to official PBOC data, the digital yuan (e-CNY) has seen remarkable growth, with unique personal wallets allegedly increasing more than fourfold from 180 million to 800 million in the nine months leading up to March 11, 2025. Transaction volume has reportedly risen 45% from 7 trillion to 10.2 trillion e-CNY during the same period, as reported by Observers.

These statistics emerge as US tariffs on Chinese imports have risen dramatically, starting at 104%, then jumping to 125%, and now reaching 145%, according to Forbes. China has responded with its own retaliatory tariffs and the PBOC has instructed state lenders to reduce dollar purchases, as reported by Reuters.

Questions surrounding China’s CBDC statistics

Many analysts are skeptical of the PBOC’s claims regarding digital yuan adoption. The timing of these record-breaking statistics coincides with China’s ongoing struggle to defend its currency amid the trade war, raising questions about their authenticity. State-controlled media has historically been known to exaggerate national achievements, particularly during periods of economic pressure.

The Chinese government also faces growing concerns about using e-CNY as a surveillance tool, as most mainland Chinese digital wallets are directly connected to citizens’ digital ID cards, allowing authorities to track spending habits.