The growth of the tests implemented by the Central Bank of China on the digital yuan (e-yuan) will reach the private banks of the Asian giant with the incorporation of the digital wallets of MYbank and WeBank to make payments and transfers.
According to a Bloomberg report, private financial institutions backed by Chinese giants Ant Group and Tencent would also have the possibility to develop new tools and functions focused on the Chinese digital currency.
In this way, MYbank and WeBank would join the four largest state-owned commercial banks in China. These are the Industrial and Commercial Bank, the Construction Bank, the Agricultural Bank and the Bank of China, which have already tested the e-yuan in several cities in that country.
A source from MYbank said that research on the digital yuan has been “steadily” progressing by following the guidelines of the agreement they have with the Central Bank of China.
Likewise, it was announced that China with the incorporation of private financial institutions seeks to stop the power of payment platforms such as Alipay and WeChat Pay, according to the report.
However, such action would be contradictory, since Alipay is a subsidiary of Ant Group that owns MYbank, all headed by billionaire Jack Ma. The same is true of WeChat Pay, a Tencent platform that has a percentage of shares in WeBank.
MYbank is a strictly digital bank that focuses on serving small and medium-sized businesses. It started its activity 5 years ago and until 2019 it granted loans in the order of USD 290 billion. While WeBank began its operations in 2014 and until 2019 the bank was valued at USD 21 billion.
New forms of payment with the digital yuan
In one of the many initiatives undertaken by the Chinese government to test its digital currency, recently, CriptoNoticias reported that the Central Bank of China conducted a test with millions of citizens who they do not own mobile phones.
In that sense, they put into operation a physical card for digital payments with the digital yuan. Users can pay without downloading and installing the digital currency application on a phone.
On the other hand, at the beginning of 2021, this media also reported that the monetary authorities of the Asian country authorized the Agricultural Bank of China to install a group of ATMs for the digital yuan at its offices located in Shenzhen.
The ATMs will be compatible with smartphones, thus allowing users to access from the wallet where their digital yuan is located.
The most recent action taken to expand the use of digital currency was during the last Chinese New Year period. The Postal Service Bank of China tested a biometric card that, through a sensor, verifies the identity of the user with the fingerprint to be able to make online and offline payments with digital yuan stored in their wallet.