China to facilitate rapid interconnection of digital yuan and payment apps

PBOC is seeking to aim for a bigger trial for the digital currency at the Beijing Winter Olympics where athletes from around the world will be allowed to use digital cash

China has acknowledged its plans of establishing a direct link between its digital currency yuan and mobile payment apps. It has been claimed that China’s digital yuan has apparently topped charts of the country’s retail transactions.

Governor Yi Gang stated that the People’s Bank of China will reportedly increase the interconnectivity between digital yuan and prevailing payment tools, improvising the e-CNY ecosystem, which is the legal name of the bank for digital currency.

As per claims by Governor Yi, a new virtual currency management model to administer the functioning of cash and bank account will be set up by the PBOC. He added that the new model will enhance privacy protection, improve efficiency and anti-counterfeiting function and record e-CNY’s effect on financial markets and monetary policy.

For the uninitiated, PBOC has established itself as a predecessor amongst banks worldwide in developing a digital currency. The ongoing testing of e-CNY since 2020 offered an estimation of 140 million people who own digital yuan account, scaling up from 20.8 million.

Reports suggest that PBOC has established ties with tech giants namely JD.com, Ant Group to promote the digital currency in the country. In addition, it has been reported that the pilot zone users will be able to use their e-CNY wallet via Ant’s Alipay app or top up funds.

Yi repeatedly ensured that the digital currency yuan will be mainly put to use for retail transactions in China along with constant supply of cash from central bank.

It has been speculated that PBOC will aim for a bigger trial for the digital currency at the Beijing Winter Olympics where athletes from abroad will be allowed to use digital cash.  

Source credit:- https://www.bloomberg.com/news/articles/2021-11-09/china-to-make-digital-yuan-and-payment-apps-more-connected