As China’s digital yuan, a central bank digital currency (CBDC), undergoes technological and operational enhancements, it’s crucial for wallet providers to support payments across all retail contexts. This insight was shared by Changchun Mu, the head of the Digital Currency Research Institute at the People’s Bank of China, on September 3.
Speaking at the annual China International Service Trade Fair, Mu highlighted that the digital yuan has seen significant advancements in its structure and operational model. It’s now time for payment mechanisms to follow suit. He specifically pointed to popular banking applications like WeChat and Alipay, emphasizing their duty to adhere to regulations.
In the near future, Mu suggests these platforms prioritize incorporating QR codes for the CBDC, while also planning for longer-term payment tool enhancements. He also touched upon bulk payment systems, stating that there’s no immediate need to overhaul existing interbank transaction systems. Instead, simply integrating a CBDC payment method would suffice.
However, he didn’t delve into the technicalities of such an integration during his address.
In related developments, China persists in its efforts to evolve its blockchain-supported yet strictly regulated digital framework. This past August, Chinese authorities introduced a blockchain-driven data exchange platform.
The newly-founded Hangzhou Data Exchange aims to facilitate the smoother exchange of corporate IT data using distributed ledger technology.
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