4/16/2023 0 Comments Ecny jingxi wechat pay morningpost![]() ![]() Potentially this could mark an acceleration in the digital currency trials. To date, tests involved signing up retailers to accept the digital yuan.įor example, the latest trial in Suzhou involves 10,000 designated bricks and mortar stores. If instead stores use existing card infrastructure, it could accelerate adoption dramatically and considerably reduce the friction involved in adoption. That’s important because the digital currency will be legal tender, and hence it should be simple to adopt. The downside is that by adding another middleman, you add another layer of cost, and one of the benefits of digital currency is saving money. That’s unless the central bank chooses to bear that cost.Īnother potential advantage for the central bank is regulatory supervision. Since 2018, WeChat Pay and AliPay have been required to process barcode payments linked to bank accounts via UnionPay’s platform. The purpose was to provide the central bank with better oversight. Hence that oversight mechanism could be used for digital currency as well.Īlso, the latest eCNY trials involve six banks, whereas UnionPay has relationships with most banks. Is there a possibility that UnionPay could somehow act as a hub for smaller banks reducing the central bank systems’ workload? The big commercial banks can convert central bank money into digital currency. Our simplistic thinking is if UnionPay is allowed to convert bank money into digital currency, then perhaps it can do that on behalf of numerous banks. We’re less confident about this latter point, but certainly, there’s a significant advantage in working with UnionPay for integrating with retailers. In other news, Hong Kong is progressing cross border work on the digital yuan.A shopper pays using e-CNY at a store in Sanya, Hainan province.Įlectronic payments via China’s digital currency have enjoyed a stratospheric rise in a matter of days after the novel payment option was made available across the country’s major mobile apps. Local services company Meituan said the number of digital yuan-denominated payments jumped 42.7 percent after connecting the Meituan app with the e-CNY app, which was developed by the People’s Bank of China, the central bank. The transaction value of the digital currency via Meituan also surged 64.4 percent compared with a week ago, the company said, adding that the number of users adding the digital yuan payment option to the Meituan mobile wallet expanded almost twentyfold. To link to two services, users need to first submit an identity authentication via the e-CNY app, the digital yuan wallet application developed by the central bank. The pilot version of the app was rolled out on Jan 4. In a similar vein, Tencent-owned WeChat, China’s largest messaging app and one of the leading payment services, also began supporting the digital yuan last week via the WeChat Pay mobile wallet. Once activated, the function allows users to receive remittances and pay for goods and services with digital currency in WeChat. The app also said it will explore the novel digital yuan payment experience in Beijing’s Winter Olympic Village, which is set to open on Jan 27. Internet giant JD has made functionality available across an array of its online and offline assets, including JD’s e-commerce and finance apps, as well as 7Fresh-the fresh food chain supermarket it backs. JD said all its proprietary automatic cashiers and smart POS machines now accept digital yuan as a payment option and relevant software development kits have made digital yuan compatible. The move aims to “allow more small and medium-sized merchants to experience the convenience of digital renminbi payments in more scenarios”, the company said in a news release. ![]()
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