China is recruiting Tencent and Ant-backed banks for a digital yuan trial

Spread the love

China has taken another leap in developing its Digital Currency Electronic Payments [DECP]. On Monday, reports noted that Ant-backed MYbank will join the digital yuan trial as the central bank rolls out the electronic currency scheme.

MYbank will “steadily advance the trial pursuant to the overall arrangement of the People’s Bank of China.”

WeBank, which is backed by Tencent, will also be participating. The services offered by the two banks will soon be launched in the People’s Bank of China digital yuan app. The firm’s e-wallets will serve the same functions as those of the six state-owned lenders participating in the trial, as per reports. State-owned lenders included the Industrial and Commercial Bank of China, the Construction Bank of China, the Agricultural Bank of China and the Bank of China.

China started the trial of the DCEP a couple of months back and it was thought to be a move by the government to reclaim the $45 trillion [293 trillion yuan] payments industry from private payment giants like Alipay, Tencent, and WeChat Pay. However, it seems like China is expanding the role of DCEP and focusing on securing the payment networks for the use of the digital yuan.

RECOMMENDED READ:  Collection of Virtual Crypto Artwork Just Sold for $777,777

Two weeks ago, the City of Beijing announced the release of 10 million digital yuan [$1.55 million] to locals. This step was taken to allow users to experience the use of the digital asset while also promoting its consumption during the Spring Festival.

With China working to facilitate the consumption of its digital yuan nationally and internationally, it could, after all, be the first to see and implement the idea ahead of other countries.

 150 Interactions,  8 today

READ ALSO:
Chinese cities are starting to support digital yuan through festive lotteries.

The city of Shenzhen has launched the third round of its central bank digital currency pilot in the form of Read more

Ripple is loyal to San Francisco, said co-founder Chris Larsen.

In October last year, Chris Larsen, co-founder of Ripple, said that the company would consider moving to other countries, citing Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us