The upcoming Digital yuan will reportedly be compatible with major payment networks within the country.
The top of the People’s Bank of China’s virtual currency research institute, Mu Changchun, added that the central bank-backed digital yuan is going to be compatible with major mobile payment wallets like WeChat Pay as well as Alipay.
In line with an official report from South China Morning Post, Mu added within a conference that the digital yuan won’t compete with WeChat Pay and Alipay:
“They don’t belong to an equivalent dimension. WeChat and Alipay are wallets, that the digital yuan will not compete with money within the wallet.”
These recent statements would seem to contradict earlier reports from native sources suggesting that China may launch its digital currency as an alternative to the two payment giants.
The digital yuan is presently accessible to limited users via an exclusive mobile wallet app. At the conference, Mu added that the mobile wallets for digital yuan face the age-old problem of counterfeiting, stating that there have been multiple fake digital yuan wallets within the market.
Mu said it might only be possible to scale back the impact of counterfeit wallets if all parties involved, from the central banks to the users, take necessary cautions.
On a special note, Mu added that the digital yuan operates on a centralized infrastructure, differentiating it from private currencies like Facebook’s Libra & Bitcoin [BTC].
China has progressed rapidly with its central bank virtual currency initiative. Last week, it published a draft law to offer a regulatory framework & legitimacy for its digital yuan. At the reporting time, the central bank is conducting pilot tests across the country for its CBDC.
Within major pilot tests, native authorities distributed $1.5 Mln worth of digital yuan to 50k of the 1.9 Mln people that signed up for a giveaway.