This article is provided for informational purposes only. The CLS report also said that Ant Group’s Mybank has now been added as the seventh e-CNY issuer while Tencent’s WeBank has yet to be activated. Although they didn’t need to log in to activate the wallet, users must choose one of the six state-owned banks to be their e-CNY issuer. In previous city-wide tests, users either had to win a lottery or apply to state-owned banks to download a standalone mobile app called “Digital Renminbi” via an invitation link. The new features also mean that Chinese users now have three methods to participate in the e-CNY test: a digital yuan card-based hardware wallet, a standalone e-CNY mobile app without log-in, and the in-app digital yuan wallet from ICBC or AliPay with log-in. These updates represent another sign of China inching closer to a full rollout of its long-anticipated central bank digital currency, dubbed as e-CNY, or also Digital Currency/Electronic Payment (DC/EP). But the function is only available for white-listed users. Per the report, these users can now activate a digital yuan wallet from the Ant Group’s mobile payment app and also send and receive transactions after topping up balances from linked bank accounts. Meanwhile, Chinese business media CLS reported on Monday that a digital yuan module has also become available for some AliPay users. The educational video highlighted the strategic purpose of the e-CNY is to “proactively react to the shockwave brought by global private cryptocurrencies towards sovereign currencies” and “to maintain the order of the financial markets.” Broader activation Tensions between China and the US will continue to grow as the US fights against Chinese manufacturing, and now also compete in the digital realm.ICBC’s new wallet user interface also contains an educational video and an FAQ sub-page. This could lead to China’s monopoly on digital currency across the globe – giving the country more power than ever before. China’s plans to take digital currency nationwide by 2022 sets the stage for its digital currency to be accepted internationally in the near future. Digital currency has mostly been decentralized, so new privacy concerns are inevitable now that the government has access to all transactions. The popularity of China’s program and the possibility of international transactions make the Renminbi a strong competitor against the US dollar as a global currency.Ĭhina’s central bank will begin to see more powers, which could include monetary policies to help grow the economy, or policy to manipulate citizen spending. After hearing of China’s successes, the US has finally begun looking into a digital currency program through central banks. More than 60 countries around the world have implemented digital currency programs. Many users said the experience was so similar to existing digital payment options like Alipay and WeChat Pay that it would not be hard to switch if eCNY were to go nationwide. To spend the money, users could use an eCNY app at selected retailers. People were invited to the trial through a lottery on WeChat (or other apps) to receive a balance of 200 electronic Yuan, about $30. This could also signal competitive devaluation in the future.Ĭhina’s central bank, which began testing eCNY last year in four cities, recently expanded those trials to bigger cities such as Beijing, Shanghai, and now Chengdu. The possibility of international digital transactions makes China’s Renminbi a strong competitor against the US dollar as a global currency, and a new way to expand its influence. Government officials have hinted the eCNY will go nationwide at the 2022 Beijing Olympics. This week, China expanded these trials to Chengdu, the fifth most populous city in the country, where the government will be distributing almost $6 million worth of digital yuan. China has become a key leader in digital currency with three large-scale projects of distributing digital Yuan, valued at $1.5 million total.
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