A Reuters article revealed that ahead of the notorious May 5 e-shopping festival, China’s six biggest state-owned banks are endorsing a CBDC distributed by China’s central bank in Shanghai.
Banks are encouraging retailers and shoppers to download a digital wallet and perform payments with the virtual yuan. The plan will compete with the present payment methods used by millions of buyers Tencent’s WeChat Pay and Alipay Ant Group.
One bank operative who has conducted a CBDC examination in Shanghai led by the People’s Bank of China dubbed the digital currency better to Alipay and WeChat Pay:
“People will understand that digital yuan electronic payments are so handy that they no longer have to use Alipay or WeChat Pay.”
The launch of the Chinese digital yuan will enable the government in Beijing to gain command over the vast range of financial data collected by the country’s most important payment systems.
We remind that China has already begun the development of internet-independent digital yuan wallets a few months ago.
