While the digital yuan, China’s central bank digital currency (CBDC), undergoes technological and business model enhancements, it has been suggested by Changchun Mu, the Director of the Digital Currency Research Institute at the People’s Bank of China, that wallet providers should enable payment solutions for various retail situations. This statement was made on September 3rd.
During his speech at the annual China International Service Trade Fair, Mu emphasized that the digital yuan has recently undergone significant upgrades in terms of its structure and business approach. Now, the focus needs to shift towards upgrading the payment tools.
Mu specifically addressed commercial banking apps such as WeChat and Alipay, emphasizing their responsibility to adhere to regulatory requirements. In the short term, these platforms should prioritize implementing QR codes for the CBDC, while also planning for long-term improvements to their payment systems.
Furthermore, Mu discussed wholesale payments, suggesting that it may not be necessary to completely overhaul the existing interbank payment and settlement systems. Instead, integrating the CBDC payment option into these systems could suffice. However, no technical specifics regarding this integration were provided during the speech.
China remains committed to developing a blockchain-backed, fully controlled digital infrastructure. In August, Chinese government officials introduced a new data exchange platform powered by blockchain technology. The Hangzhou Data Exchange, as it is known, aims to streamline the exchange of corporate information technology data through the utilization of distributed ledger technology.
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