![]() Signage for the digital yuan at a self check-out counter inside a supermarket in Shenzhen on November 20, 2020. Photo: Bloomberg alt=Signage for the digital yuan at a self check-out counter inside a supermarket in Shenzhen on November 20, 2020. Photo: Bloomberg>įor now, though, use of the digital currency is limited to designated cities, including Shenzhen, Suzhou, Xiongan, Chengdu, Shanghai, Hainan, Changsha, Xian, Qingdao, Dalian, and Beijing, which includes Winter Olympics venues. NFTs are hot commodities in China despite ban on profit The 2022 Winter Olympics is scheduled to begin February 4 in China's capital, where foreign visitors will also be able to use e-CNY without a domestic bank account, the central bank said last year.Īn increasing number of places in the city now support e-CNY payments, including buses, subway stations, the Wumart supermarket chain, and certain merchants at tourist spots such as the Forbidden City, Old Summer Palace, and Badaling, the most-visited portion of the Great Wall.Īt the same time, use of e-CNY lags far behind Alipay and WeChat Pay, which together control over 90 per cent of the mobile payments market. Two cashiers at a Wumart store in eastern Beijing told the Post on Wednesday that "not many" customers have chosen to pay with digital yuan. ![]() Those who use e-CNY often do so because they have vouchers, given as subsidies by banks and merchants to encourage use of digital yuan. #BREAKING: Mainland China forbids the commercial use of mobile payment apps WeChat Pay and Alipay for money collection, starting on March 1, in order to prevent identity theft and embezzlement via such platform, People’s Bank of China announced.- Ezra Cheung November 26, 2021īut this isn’t happening quite yet. The reality of the situation on the ground is much more mundane. Instead, the PBoC is mandating that businesses only use business payment codes instead of personal ones - a common scheme for small family-run businesses. “The government has decided to strengthen supervision due to the hidden risks of personal payment barcodes. “This not only confuses the nature of the transaction, but also leads to the distortion of transaction information, which affects risk monitoring.” For example, some institutions use barcode transfer services for personal receipts to handle large-scale ,” Tony Ling, a partner at China-based Bizantine Capital, wrote in a note to Blockworks. Ling also added that the use of personal payment codes was a common scheme for laundering funds from underground casinos. Underground casinos would often recruit people to rent their personal payment code to the casino in order to launder funds, in exchange for a cut of the proceeds. Part of the reason why this announcement generated such considerable interest is because of the expectation that eCNY will eventually replace the payment rails offered by WeChat Pay and AliPay. Given the two apps popularity in China they control a significant amount of the supply of M2, or commercial bank money. This is problematic for any central banker, as they cannot exert the same amount of control on M2 as they can on cash.Īs the People’s Bank of China whitepaper on eCNY explains, the “eCNY will provide the public with a new interoperable way of payment, which will further diversify payment instruments and make the payment system more efficient and safer. The Chinese authorities support coordinated development of various payment methods.”ĭuring a panel on the topic earlier this year at CoinDesk’s Consensus conference, Yaya Fanusie, a Fellow at the Center for a New American Security, and former CIA counter terror financing analyst, pointed out that China’s push for a CBDC via the eCNY is about gathering as much data as possible - to combat things like tax evasion and illegal gambling amongst other things. “You’re creating architecture that gives the government a little bit more insight into transactions.” The key thing here is that the central bank is, I think, inserting itself more into the payment architecture,” he said during the panel.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |