Pilot versions of its digital yuan wallet application appeared online in the Chinese Android and Apple app stores on Jan. 4.

A venture capitalist in Beijing surnamed Zhou, however, said the new app would unlikely beat similar products at the current stage, such as Alipay and WeChat Pay, given their strong foothold.

“Why would they change the way they’ve used to pay?” he said. “It gives you no other benefits.”

Huang (a pseudonym), a Shenzhen citizen, said neither he nor his acquaintances use the app. “For me, it is nothing better than Alipay and WeChat Pay,” he told The Epoch Times on Feb. 20.

A Chinese customer uses his mobile to pay via a QR code with the WeChat app at a local market in Beijing on Sept. 19, 2020.

Beijing digital currency push at winter olympics puts visa in a bind

Authorities banned both tech-firm-run competitors WeChat and Alipay in the Olympic Village during foreign athletes’ stay, limiting transactions to cash, Visa cards, and e-CNY.

Concerns

“By promoting e-CNY to an international audience,” said Corr, “Beijing is trying to socialize its currency as something new and innovative to encourage the global public to take it up.”

Participants of the 2022 Games, including international athletes, coaches, and media, spent at least 2 million yuan ($315,761) a day in digital currency, said Mu Changchun, the top official at the Chinese central bank.

Economic giants such as the US and UK, however, are lagging behind – despite expressing keen interest in pursuing CBDCs.

The UK launched a taskforce in April 2021 to examine the viability of launching a CBDC, although the House of Lords stated last month there wasn’t a convincing case for one. Meanwhile, the US Federal Reserve’s January white paper highlighted the pros and cons but didn’t ultimately take a position. It preferred, instead, to leave the decision to a divided Congress.


Effectively, a digital dollar is some years away.

advertisement

China, meanwhile, has been exploring digital currencies since 2014 and has ran several trials of its Digital Currency Electronic Payment (DC/EP) – the formal name for the digital yuan.

Digital currency push winter olympics visair

Those apps also have many other features, giving users few reasons to opt for using e-CNY just for payments.

“WeChat Pay seems to be enough,” said a reporter who belongs to China’s state-run media.

There are also concerns that what and where people buy can be tracked by Chinese authorities. China’s central bank advocates the principle of “anonymity for small payments” and “minimum collection of personal information.” In China, however, principle and practice are often different.

The Winter Games have been set up as a great opportunity for China to promote e-CNY. Amid the pandemic, however, China had to limit admission to the Games.

Digital currency push winter olympics visame

As China’s debut of its digital currency draws to a close in tandem with the 2022 Winter Olympics, the regime’s crypto ambitions remain in place. Experts warned of the Chinese Communist Party’s centralized control, both at home and abroad.

A digital currency will empower the regime’s control over its populace, especially dissenters, as all future financial transactions would leave an easy-to-monitor, digital paper trail. The Olympic games may have functioned as a staging ground for foreign individuals from around the world to adopt China’s digital currency.

The country has been developing a digital form of its sovereign currency since 2014, issued by its central bank, the People’s Bank of China (PBOC).

Digital currency push winter olympics visan

Chinaplans to use itsnew digital currency during the Winter Olympics in Beijing in 2022.

This is reported byReuters, citing the head of the monetary policy department at the People’s Bank of China (PBoC), Sun Guofeng, as a source.

Reuters reveals that Sun has stated thatthe PBoC has not yet decided when it will launch its CBDCon the market, but that it is likely that the launch will take place before the 2022 Winter Olympics, since the intention is to use it during the sporting event.

At first, when the field tests were announced, it was thought that the Chinese DC/EP (Digital Currency / Electronic Payments) could be launched on the marketas early as 2020, but these new statements by Sun suggest that it may take longer.

China, testing in progress but unclear timeframe for the digital currency

After all, although thetests have been going on for several months now, the PBoC never wanted to reveal the planned launch date, probably because, as Sun confirmed, this date has not yet been decided.

However, despite the fact that the ongoing tests would not have generated any particular problems, Sun’s words sound a bit like a postponement, as if they had decided to take more time for field testing.

Furthermore,yesterdayit was discovered that the current tests arefocused only on small retail transactions, i.e. they have not yet been extended to scenarios that require large volume transactions. It is therefore quite possible that the PBoC has decided to continue with the tests, probably with a view to extending them to different uses than those tested so far.

From purchasing luxury goods to ride-hailing, Chinese citizens can now use Alipay and WeChat to make electronic payments outside of China by showing a QR code on their phones. U.S. merchants accepting China’s cashless mobile payments system can also reach Chinese customers at their stores in China.

The two dominant virtual wallet systems in China, taking up over 90 percent of the domestic mobile payments market, also announced they are teaming up with the digital yuan.

China’s biggest messaging and payment app WeChat said in January it will support the digital yuan. Its mobile payment and e-wallet service WeChat Pay has over 800 million active monthly users.
Alipay, with more than 1 billion users, began trialing digital yuan payments last year.

Alipay (L) and WeChat (R) QR payment codes displayed at a market in Shanghai on Oct. 27, 2020.

The DCEP, according to official statements, is the same thing as the legal tender Yuan, so much so that it can be converted to Yuan, and so the tests most likely concern only the functioning of the technology infrastructure at the basis of this important innovation.

In particular, the professor of Gaoling School of Artificial Intelligence at Renmin University, Wang Peng, said:

“At its current stage, the test’s primary goal is to ensure the digital currency’s operation runs smoothly and safe, and to determine how DCEP is distributed from the central bank to financial institutions. Only when trials in retailing are successful will they be carried out in large transaction scenarios”.

In May 2021, China also signalled a deeper push against cryptocurrencies, targeting cryptocurrency mining as well as exchange platforms. The government also brought in measures banning banks and financial institutions from providing cryptocurrency-related services.

Chashchin explains cryptocurrencies uniquely limit central bank control over the flow of funds. To reduce competition for a convenient, regulated, and controlled digital yuan, he adds, it was sensible to ban cryptocurrencies.“Even if the reason for the cryptocurrency ban is different, by blocking cryptocurrencies, China has strongly fenced itself off from all the available opportunities for the infrastructure of the crypto world, just as other countries begin to launch into the space and explore the benefits of this technology,” he says.

China Airlines to raise passenger services by 40%

POKEMON-THEMED JET: An Airbus A321 would be painted with characters of the Japanese firm, which for the first time teams up with a foreign airline China Airlines Ltd (CAL, 華航) is planning to offer 40 percent more passenger flights this quarter than last quarter, as air travel demand is rising, the company said yesterday as it announced the launch of a Pokemon-themed jet. The airline is planning to paint one of its Airbus A321neo planes with a livery representing the Japanese animation, video game and mobile game franchise, China Airlines told a news conference in Taipei.

Similar Posts:

Leave a comment