The digital yuan would restore this power and then some. In China, the central bank has less power, because of electronic payments.” and Europe, everything goes through banks ultimately, so the central bank has a lot more power over money in circulation. “A very large share of payments in China go through these two huge platforms, and a lot of these payments actually bypass bank deposits,” Dr. China is almost cash-free already, especially in major cities, but this has been driven by private companies, not the state. The success of Alipay and WeChat Pay is one of the reasons Beijing is pressing ahead with the digital yuan, even as many other countries are years away from even holding trials of electronic currencies, said Viktar Fedaseyeu, a finance professor at the Shanghai-based China Europe International Business School. Alibaba and Tencent’s products are also used internationally, albeit mainly by Chinese tourists. That figure pales in comparison, however, to the more than $2-trillion that Alipay processes every month. Chinese officials see it as a way to internationalize the country’s currency, used for just 2 per cent of global transactions today.Īccording to state media, by the end of 2021, roughly 261 million digital yuan wallets had been opened, conducting more than $17.4-billion in transactions. Industry Ministry under fire for vague testimony to parliament about security review of Chinese acquisition of Canadian lithium firm Transition to EVs could be only hope for Canada’s shrinking auto industry Speaking to broadcaster CCTV last month, Bank of China official Li Xin said, “Launching the digital yuan at a big party like the Winter Olympics can showcase China’s latest fintech achievement to the world.”
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State media has been full of glowing coverage of the electronic currency’s successes and the potential for expansion.
One asked how this reporter had heard about e-CNY and seemed perplexed, and not entirely believing, when told the government was promoting it heavily. Those manning the tills at various food outlets and coffee stands in the media centre were equally bemused. The Globe and Mail was finally successful in getting some e-CNY by swapping paper notes at a Bank of China outlet within the Olympic village, but only after providing a passport to open a “hardware wallet,” essentially a cash card that could be used at contactless terminals.īank staff were very helpful but confused about why a foreigner wanted to use the digital yuan. and Tencent Holdings Ltd., respectively – allow users to easily link bank or credit cards to add funds. This reporter downloaded the e-CNY app and opened a digital wallet with ICBC, but was unable to add any funds “due to compliance reasons.” A Bank of China wallet at least provided a way to do so, but only for people already possessing a Bank of China bank account.īy comparison, Alipay or WeChat Pay – the country’s largest payment providers, owned by tech giants Alibaba Group Holding Ltd. But if Beijing 2022 was supposed to be the digital yuan’s global coming-out party, that plan was dashed after China barred international spectators because of COVID-19 concerns, meaning only a relatively small number of foreigners – journalists, Olympic staff and athletes mainly – are being exposed to the digital yuan.Īnd for those within the Olympic bubble, aside from the occasional logo, there isn’t much sign that a grand experiment is under way, nor is it particularly easy to take part.
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