Loading...

China’s digital yuan gets a game-changing makeover

TL;DR

  • Changchun Mu, the director of the Digital Currency Research Institute of the People’s Bank of China, emphasized the desire of digital yuan developers to see it integrated into all online retail payment options.
  • One of the key points Mu raised was the integration of the digital yuan into popular payment platforms and applications used by consumers, including those operated by commercial banks, WeChat, and Alipay.

Changchun Mu, the director of the Digital Currency Research Institute of the People’s Bank of China, made an intriguing announcement regarding China’s central bank digital currency (CBDC), also known as the digital yuan on September 3. Speaking at the annual China International Service Trade Fair, Mu highlighted the ongoing technological and business model upgrades that the digital yuan is undergoing, and he emphasized the desire of the digital yuan developers to see it integrated into all online retail payment options.

The digital yuan has been a significant initiative for the Chinese government, aiming to provide a digital alternative to the traditional paper currency. Mu stated that the CBDC has “undergone a major upgrade” in terms of its “organizational forms” and business model. This suggests that the central bank and relevant authorities have been actively working on refining the operational aspects of the digital yuan to make it more adaptable and versatile in various payment scenarios.

 Integration of the digital yuan into popular payment platforms 

One of the key points Mu raised was the integration of the digital yuan into popular payment platforms and applications used by consumers, including those operated by commercial banks, WeChat, and Alipay. He stressed the importance of these platforms complying with the regulations set forth by the central bank. In the short term, the focus appears to be on implementing QR codes for CBDC transactions, which would facilitate easy adoption by users. Simultaneously, there are plans for long-term upgrades to payment tools, although specific details about these upgrades were not provided in Mu’s speech.

Moreover, Mu touched on the issue of wholesale payments. He suggested that there might not be a need for a complete overhaul of the existing interbank payment and settlement systems. Instead, the strategy could involve integrating the CBDC payment option into the existing infrastructure, which would be a more practical and gradual approach. However, Mu did not delve into the technical specifics of how this integration would take place.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Griffith
Cryptopolitan
Subscribe to CryptoPolitan