More and more details about the digital yuan are coming to light.
The planned digital yuan is said to work with the main payment networks in the country
Mu Changchun, head of the digital currency research institute at People’s Bank of ChinaChina, said the digital yuan issued by the central bank will work with major mobile payment service providers such as WeChat Pay and Alipay.
According to a report from the South China Morning Post, Mu said at a conference that the digital yuan will not compete with WeChat Pay and Alipay:
„They don’t operate in the same dimension. WeChat and Crypto Bank are wallets, while the digital yuan is the money in the wallet.“
These statements contradict previous reports from local sources that China is planning to launch its digital currency as an alternative to the two payment giants.
The digital yuan is currently available to selected users via an exclusive mobile wallet application. At the conference, Mu said that among the mobile wallets for the digital yuan, there are also fakes. Several such fake digital wallets for the yuan are already on the market.
Mu said reducing the impact of counterfeit wallets was only possible if everyone involved, from the central bank to users, took the necessary precautions
Mu also stated that the digital yuan operates with a centralized infrastructure. This distinguishes it from private currencies such as Facebook’s Libra and Bitcoin ( BTC ).
China is making rapid strides on its central bank digital currency . Last week, it published a bill to create a legal framework for the digital yuan. The central bank is currently conducting pilot tests for its CBDC across the country.
Local authorities distributed $ 1.5 million worth of digital yuan to 50,000 out of 1.9 million people who applied for a giveaway.