Following the recent announcement made by the European Central Bank launching digital-Euro, China has expedited its transition from fiat-Yuan to digital-Yuan. Based on recent developments, experts from South Korea and China have started paying close attention to China’s activities.
These experts have stated that China is working tirelessly to make the digital-Yuan compatible with other platforms. The targeted platforms are the ones that have already gained an enormous amount of popularity among the Chinese economy.
At present, the majority of the Chinese population has already started shifting towards e-pay solutions such as WeChat Pay and AliPay (powered by Alibaba). In addition to these, Chinese central banks are also targeting other e-solutions that are already supported by the Chinese banks.
However, Chinese banks such as the Middle Kingdom’s central bank and the People’s Bank of China (PBoC) seem to be keeping it extremely confidential. These banks are refraining from giving out any details related to the app-interoperability for the private and public sectors for the launch of the digital-Yuan.
Recently, an anonymous person leaked a few images that showed that some of the testbed users were using digital-Yuan. These images further revealed that the app testing personnel were using digital-Yuan that can only be issued by Chinese-central banks on smartphone apps.
Im Dong-min, who is a well-renowned research specialist, stated in his report that at present, the Chinese people are using the WeChat Pay and AliPay applications on a large scale. Therefore, it is highly likely for the Chinese Government and the central banks to integrate their services with these platforms.
As per Dong-Min, the entire banking system in the state of China is dominated by the Chinese Central banks. This is why the implementation of the Chinese Digital-Yuan across China will be executed conveniently without facing any difficulties.
If the Chinese government integrates their digital-Yuan system with either AliPay or WeChat pay, all the customers would be required to scan the barcode off their AliPay or WeChat apps and pay the amount using the DCEP.
Many analysts and economic experts have speculated that the coming years will see even more countries becoming a part of this competition.