![]() The move is designed to improve interoperability among various payment platforms and could potentially allow a consumer to use the currency from an Alipay wallet to pay for items on rival platforms like JD.com or WeChat, analysts said. However, the official launch date is unknown. ![]() Six years in the making, the digital yuan, also known as Digital Currency Electronic Payment, or DCEP, is set to be issued by China's central bank to replace cash in circulation. Ltd., while WeChat Pay and Union Pay are not accepted on Alibaba and its related platforms.įollow our series previewing the landmark IPO by Ant Group:Ĭhina payments giants may face limited risk, tweak growth plans as US mulls banĪnt-sized transaction margins will not spoil giant IPO valuationĬhina may seek to raise yuan's stature via a digital avatarĬhina's startup STAR board will still have a long way to go after Ant's mega IPOĪnt Group's close ties with Alibaba to endure post-IPOĬhina's leverage caps on microlenders bring Ant's regulatory risk to forefrontĬhina's Ant Group may seek clear blue skies in Southeast Asia to grow via M&AĪnt Group's lack of strong messaging platform concerns investors as IPO loomsīank disruptors doubling down on mobile payments in China does not allow payments from Alipay, owned by Alibaba-backed Ant Group Co. Major Chinese e-commerce players now operate in a closed environment, allowing their preferred digital payment providers and often blocking rival services. The e-CNY will digitize “the last mile” of consumption, enabling banks and merchants to capture data and gain insight into spending patterns, said Wilson Cho w, Global TMT Leader, PWC China.China's plan for a centralized digital currency could open up the country's "walled-garden" online retail payments ecosystem, but analysts believe it may not immediately change the way shoppers transact with Alibaba Group Holding Ltd.-affiliated Alipay and Tencent Holdings Ltd.'s WeChat Pay, which powers payments on the WeChat super-app. So mass adoption of the e-CNY won’t happen overnight. That means none of participating banks can transfer e-CNY between their digital wallets and two established payment platforms.Īlipay and WeChat Pay dominate China’s online payment market by controlling 94% of data. It bundled with a dozen popular apps including Meituan, JD.com, Didi, and Bilibili but cannot link to Wechat or Alipay. The six banks in the e-CNY pilot schemes include China’s biggest lenders such industrial, commercial bank of China, Agricultural Bank of China, China Construction Bank, and Bank of China.Īlso Read: Foreign Visitors Could Use China’s Digital Yuan at The 2022 Beijing Winter Olympicsĭigital wallets are still being beta tested. ![]() Under two-tier distribution system, PBOC issues digital currency to banks which pass money to individual and companies. Last year it was launched in small pilot schemes in four cities. The e-CNY digitalises a portion of China’s physical notes and Coins, or currency in circulation(MO). The PBoC and Tencent declined to respond to requests for comment. “Wechat pay and Alipay owns an ocean of data,” so the e-CNY rollout facilitates China’s anti-trust campaign and helps the government control big data, he added. Whoever owns data thrives, “said another banking official tasked with promoting the E-CNY”. In private, State bank marketing digital fiat currency for the central bank bluntly describes Beijing’s intention to undercut Duo’s dominance.
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