Digital Yuan: Smartphone with CBDC wallet launched in China

crypto adoption

TL;DR Breakdown

  • Honor unveils Magic3 smartphone with digital Yuan wallet.
  • Chinese digital Yuan to lead global CBDCs race.

International Organization continues to seek relevance in the fast-expanding cryptocurrency space as a result, Honor has unveiled the first Snapdragon-powered smartphone to support the Chinese digital Yuan.

According to the announcement, Chinese smartphone manufacturers Honor will roll out the Magic3 brand, an affordable smartphone with built-in capability to support a hardware wallet for the People’s Bank of China’s (PBoC) CBDC project.

The Magic 3 series will be the first Snapdragon-powered smartphone to support a hardware wallet for the digital Yuan. According to reports, it is built on Qualcomm’s latest Snapdragon chip, the 888.

Honor which was previously a subsidiary of Huawei revealed that the Magic3 wallets, unlike other digital assets storage, have top-notch hardware which will provide users with tight payment-level security protection.

Additionally, it is worth noting that the Magic 3 series are the Chinese-based smartphone manufacturer’s first handset launched since it became an independent organization. The series includes the Magic3, the Magic3 Pro, and Magic3 Pro+.

Notably, while the Honor Magic3 is the first phone from the Snapdragon 888 chip design to support the digital Yuan, other phone brands have been building devices with capabilities to hold the Chinese CBDC approximately since last year.

Chinese digital Yuan to lead global CBDCs race

Meanwhile, with the current state of things in the digital space, the People Bank of China (PBoC) CBDC project seems to be way ahead of the rest country and has been singled out by experts to lead the global economy if successfully launched.

According to a survey from the Bank for International Settlements (BIS) from January, one-fifth of the central banks around the globe are likely to release some kind of a CBDC in the next three years. The survey of 65 central banks also showed that 86 percent were already exploring the benefits and drawbacks of digital currencies, with some testing possible designs.

The Chinese central bank has actively been ramping up its CBDC trials since last year, although in March, the bank unveiled its digital yuan trials findings to the general public.

Interestingly, several U.S. government departments have expressed concern about the digital Yuan’s effect on the world’s reserve currency and the dollar, Bloomberg reported.

Among the concerned department are U.S. Treasury, State Department, Pentagon, and National Security Council, who have requested an in-depth review into what effect the digital Yuan could have on the U.S. dollar. Also, officials from the various departments are eager to understand how the digital Yuan would be distributed and what possible threats it could pose on the dollar.

Also, earlier during a Bank of International Settlements (BIS) conference, the leader of China’s CBDC project, Mu Changchun, said one of the goals of the digital Yuan was to be a “back-up” payment option for Alipay and WeChat Pay, which are responsible for 98 percent of the mobile payments in China.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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