Chinese telecom companies show growing interest in digital currencies

 

Chinese :

telecom companies show :

growing interest in digital currencies

A recent report said that :

• Chinese telecommunications companies

• are becoming increasingly interested in adopting

• the digital yuan as CBDC discovers new accreditation areas.

The Federal People's Bank of China (PBoC) :

• is eager to include the largest operators in the country

• such as China Telecom and China Unicom

• more deeply in the pilot program, according to EY (via Sohu).

Chinese telecommunications companies to

accelerate adoption of digital yuan :

1. The People's Bank of China (PBoC) believes that
2. Chinese telecommunications companies can help accelerate
3. the adoption of digital yuan.

The Central Bank unveiled

the SIM-based "solid" yuan digital wallet option earlier this month.

Technology enabled customers to pay

with CBDC even when their phones are off, or there is no network access.

While the solution is currently available only to Android smartphone owners

However :

1. Chinese telecom companies
2. and banks could expand their potential to
3. include second-generation telephone customers.

Most Chinese rural residents, especially the elderly, own 2G phones.

Moreover :

these groups are often the least technologically knowledgeable in China

another factor indicating that :

1. the country
2. may soon experience a boom associated
3. with the very digital yuan.

According to the Central Bank

CBDC will offset the "digital divide", and increase financial inclusion.

SIM-based portfolios also provide better security key management features.

It enables encryption technologies that

promise a higher level of security than software-based solutions.

A large number of Chinese telecommunications companies

have indicated their willingness to cooperate with PBoC

According to the latter report :

they consider it a critical element of long-term development.

Companies intend to include digital yuan in 5G operations and the Internet of Things (IoT) and are looking at how to integrate it into their payment systems.

Smart electronics charging stations, public power grids, shared bikes and smart utility meters may be integrated into portfolios.

China :

sees increased use of digital yuan

As part of the yuan digital shopping festival that began this week

visitors from mainland China can now buy in Hong Kong using the digital yuan.

As of July 18 :

• customers with digital yuan wallets for the Bank of

• China can buy from more than 200 physical stores in

• Hong Kong and enjoy digital yuan shopping discounts

• by scanning QR codes in approved stores.

Hong Kong is solidifying its position

as the Chinese yuan's main offshore trading hub

In 2022 it :

• became the first region outside mainland China to test cross

• border digital yuan use. In May 2023, the city introduced

• e-HKD, a pilot project for Hong Kong's CBDC.

Another noteworthy experience :

by the Bank of China in Hong Kong offered incentives to customers to create a BOC e-CNY portfolio for a $14 (100 yuan) refundable bonus in U Select, a supermarket chain.

Highlighting the success of the digital yuan

Yi Gang :

• governor of China's central bank

• recently stated that $250 billion had been diverted

• using CBDC since the pilot program began 18 months ago.

The central bank's digital currency :

which saw transactions of 1.8 trillion yuan by the end of June, was discussed at the conference held in Singapore on July 19 to highlight its evolution.