China's digital yuan breaks records amid escalating trade war with U.S

In recent months, China’s digital yuan (e-CNY) has come under the spotlight amid the escalating trade war with the United States. This situation has certainly had a negative impact on the traditional yuan, which is losing ground on the international monetary scene. In response to these challenges, the People’s Bank of China (PBOC) has stepped up its efforts to showcase the success of its cryptocurrency and maintain control over the economic situation.

Digital Yuan Success: Facts and Figures

According to official data from the PBOC, the number of unique personal wallets with e-CNY increased from 180 million to 800 million in the nine months to March 11, 2025. This is an impressive increase, which, according to Chinese authorities, indicates growing interest in the digital currency. The volume of transactions in e-CNY also showed a significant increase, from 7 trillion to 10.2 trillion yuan, which is a 45% increase.

However, it is worth noting that the credibility of these figures is somewhat questionable. In the context of the crisis, Chinese state media often embellish reports, which casts doubt on the reliability of the data presented.

Trade war with the US: new challenges

Amid these successes, the US rolled back some of its tariffs for a number of countries, but for China, the strategy remains tough. Under the leadership of Donald Trump, rates against Chinese imports increased to 145%. This created additional difficulties for the Chinese economy and, in particular, for the yuan.

In response to these measures, Beijing introduced retaliatory tariffs and instructed banks to reduce their purchases of dollars. Despite these moves, the yuan continues to fall, hitting a 17-year low of 7.3498 yuan per dollar this week.

Skepticism and Control

Despite the active promotion of the digital yuan, many experts and members of the crypto community are skeptical about its future. The main reason is that the digital yuan could become a tool for controlling citizens' spending. All e-CNY wallets in mainland China are tightly tied to digital IDs, raising concerns about user privacy and freedom.

In Conclusion

Thus, China continues to actively promote its digital yuan amid the escalating trade war with the United States. Despite the impressive figures presented by the PBOC, skepticism and concerns about control remain relevant. Amid economic instability, Chinese authorities are seeking to use any opportunity to strengthen the position of the yuan and its digital equivalent, but the future of these initiatives remains in question.