No matter how many efforts other countries make in developing and launching their CBDCs, it seems that all their efforts stale against China. China has made tremendous progress and has gained a lot of advancement in the CBDC sector. It was just around the same month last year when China had announced it is planning to launch its CBDC.
In a matter of 12 months, China has made so much progress that it has already started promoting its CBDC over other payment firms that were ruling the local Chinese markets.
After going all the necessary development phases, testing, and pilots, the Chinese central bank is now ready to launch the CBDC. However, the first and foremost obstacle is the local payment firms that have been ruling the market for a very long time.
The names of these two payment firms in China are WeChat Pay and Alipay that have been around for a long time. At present, even the farmers in the country are used to making payments with the help of these two providers.
Therefore, it is going to be a big challenge for the central bank of China to set these two payment firms aside and reach out to the masses in the country.
However, the central bank of China has a plan of its own into tackling this situation and promote CBDC as the primary payment method. For this, the central bank of China is getting help from the major banks from China. These banks are also helping the central bank of China to gain prominence for the digital yuan over other payment service providers.
One of the local media-reporting firms shared a report in regards to the central bank of China’s involvement in promoting digital yuan. The report was shared by the media source on Monday, April 26, 2021.
According to the report, the central bank of China has acquired the help of six major banks in China. These banks are currently the largest in China and have the highest number of clients/customers being catered through their platforms.
The central bank of China alongside the major banks is promoting the utility of the digital yuan. They are executing this with the help of an online shopping festival that has been set to take place on May 5, 2021.
These particular banks have expedited their efforts in encouraging their consumers and the retail outlets to download the applications needed to deal in digital yuan.
By doing this, the banks will be able to divert the attention of the consumers and retail outlets from the local payment firms. This would eventually help them promote the usage of the digital yuan, which is also called e-CNY.