- Chinese yuan has fallen to a 17-year low of 7.3498 CNY per USD amid escalating trade tensions with the US.
- China claims its digital yuan (e-CNY) usage has quadrupled to 800 million wallets with transactions reaching 10.2 trillion e-CNY.
- US tariffs on Chinese goods have increased dramatically to 145% as the trade war intensifies under President Trump.
The Chinese yuan has plummeted to its lowest level against the US dollar in 17 years, reaching 7.3498 CNY per USD this week, as President Donald Trump‘s administration continues to escalate tariffs against China. In response, the People’s Bank of China (PBOC) has implemented monetary interventions and launched a media campaign highlighting the success of its digital currency amid the intensifying 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.
Expanding digital yuan functionality amid currency defense
Despite skepticism, the PBOC continues to enhance its CBDC ecosystem. Recent additions include offline payment capabilities, QR code scanning functionality, and expanded acceptance locations including public transportation systems.
These developments occur as China makes a concerted effort to portray strength in its fiat currency and associated digital version. The PBOC’s monetary interventions have so far failed to prevent the yuan from sliding to multi-year lows against the dollar, as Trump maintains his position of imposing the harshest tariffs on Chinese exports compared to any other major trading partner.
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