China launches pilot digital yuan on Tuesday, January 4, 2022. The digital currency. It works through the e-CNY mobile app, which is available on Android and the Apple App Store. The app is still in development and is limited to certain users, such as local banks. Because China plans to launch nationwide.
important issues
- China’s digital yuan ready for 1 billion users of popular mobile payment app WeChat
- The launch comes ahead of the Beijing Winter Olympics to facilitate transactions without banking ties.
- China’s ban on crypto mining supports government efforts to officially launch digital currency.
The digital yuan is also available in Tencent Holdings Limited (TCEHY) WeChat, China’s most popular messaging app with more than 1 billion users. This is a major shift from China’s previous plans to issue the digital yuan in some regions via lottery. In June 2021, it was announced that 40 million yuan ($6.2 million) would be distributed via lottery to the people of Beijing. In early February 2021, Chengdu, a city in southwest China It said it would hand over $6 million in digital yuan. Shenzhen and Suzhou conducted similar experiments.
China’s second-leading mobile payment app Alipay by Ant Group, a subsidiary of Alibaba Group Holding Limited (Baba), is experimenting with digital yuan payments.
The People’s Bank of China (PBOC) has planned to launch a digital currency ahead of the Beijing Winter Olympics scheduled for February 2022, when “foreigners traveling in China can temporarily open An e-CNY wallet to meet your daily payment needs without opening a local bank account.”
Previously, China’s crypto ban in September 2021 cut off the largest mining network in the world. Although the digital yuan has already begun to test, the hashrate has recovered rapidly. This indicates that all processing power is back to normal. because the United States Become a new hub for crypto mining.
The PBOC’s Cryptocurrency Research Institute, which launches this app, will consider the compatibility of cryptocurrencies with fiat and other forms of payment that are currently available.
