It is reported that The digital yuan, which will be launched shortly, will be compatible with the country’s major payment networks.
Mu Changchun, director of the People’s Bank of China’s Digital Currency Research Institute, said so The central bank-supported digital yuan is supported by major mobile payment wallets such as WeChat Pay and Alipay.
According to a report by the South China Morning Post, Mu said during a conference that The digital yuan won’t compete with WeChat Pay and Alipay:
“They don’t belong to the same dimension. WeChat and Alipay are wallets, while the digital yuan is the money in the wallet.”
These latest statements appear to contradict previous reports from local sources. This suggests that China could launch its digital currency as an alternative to the two payment giants.
The digital yuan is currently accessible to restricted users through a dedicated mobile wallet application. At the conference, Mu said that digital yuan mobile wallets are facing the long-standing problem of counterfeiting and that there are several counterfeit digital yuan digital wallets in the market.
Mu said that The only way to reduce the impact of counterfeit wallets could be if everyone involved, from the central bank to users, took the necessary precautions.
On the other hand, Mu said that The digital yuan works with a centralized infrastructure and differs from private currencies like Facebook’s Libra and Bitcoin (BTC).
China has made rapid progress with its central bank digital currency initiative. Last week she released a bill to create a legal framework and legitimacy for her digital yuan. The central bank is currently testing its CBDC across the country.
In one of the largest pilot tests Local authorities distributed $ 1.5 million in digital yuan to 50,000 of the 1.9 million people who entered the giveaway.
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