“China’s central bank said its planned digital currency will co-exist with technology platforms like Ant Group’s Alipay and Tencent’s WeChat Pay, which currently dominate the online payments market,” reported Bloomberg.
Details:
- Mu Changchun, director of the People’s Bank of China’s digital currency research institute, said that the country is developing its digital currency to provide a back-up to Alipay and WeChat Pay, which make up 98% of the mobile payments market.
- The digital yuan will co-exist with paper notes and mobile payment platforms, and will follow a set of principles for its cross-border applications.
Context:
- With the People’s Bank of China running trials for the digital currency, several banks in Shanghai have already started offering digital yuan wallets for individuals and corporate offices.
- The central bank will also create a scalable foreign exchange trade platform that’s supported by digital ledger technology.
