China Crypto Roundup (Oct 26- Nov 2): China is Already Seeing Counterfeit Digital RMB wallets, Huawei’s Newest Smartphones Come with Digital Yuan Wallet, 3.12 Million Digital Yuan Transactions Have Already Been Processed
The top stories from the Chinese cryptocurrency sphere this past week include: China is already seeing fakes of its still developing digital yuan wallet, Huawei’s newest smartphones come with digital yuan wallet, more than 3.12 million digital yuan transactions have already been processed.……
China is already seeing counterfeit digital RMB wallets
According to Mu Changchun, the head of the Chinese central bank’s digital currency research institute, in a speech on the digital yuan’s progress, and how policy makers expect it to get along with existing private digital wallets.
“We have already found counterfeit digital RMB wallets on the market. Just like in the era of paper banknotes, the People’s Bank of China still faces the problem of counterfeiting and implementing anti-counterfeiting measures…”
Now Chinese digital yuan is facing an age-old problem similar to cash: counterfeiting. The topic of counterfeiting arose as Mu was speaking about the way the central bank was going to shape its monetary policy regarding the digital yuan. As the government and the central bank both have a momentous job ahead of them, it’s of the utmost importance to resolve as many fundamental issues as early as possible.
Mu explained that establishing anti-counterfeiting measures is an extremely costly process in the case of paper notes, and that it can only increase in cost when applied to digital currencies. For PBoC to reduce the cost of these measures and prevent counterfeiting, it needs to establish a coordinated effort to develop a digital yuan wallet that is easily identifiable and recognizable. An important part of legitimizing the official digital yuan wallet is including other companies and government organizations in the ecosystem.
Huawei’s Latest Smartphone Comes with a CBDC Wallet for Digital Yuan
Supporting the People’s Bank of China’s rollout of the digital yuan, Huawei has announced that its new smartphone will feature a built-in hardware wallet to store it. Huawei said on its Weibo channel on Friday that the Mate 40 line of devices will feature “hardware-level security, controllable anonymous protection, and dual offline transactions.”
As a result of US sanctions restricting access to some of the advanced tech required to make these smartphones, the Mate 40 may be the last Android-powered Huawei smartphone.
It is not clear at this stage if the users of Mate40 will be able to directly convert any bank savings into the physical digital yuan wallet. But Yu noted that the feature is a step to expand the usage of digital yuan on the mobile front.
Over 3.12 million digital yuan transactions have already been processed
According to Zou, Wanxiang Labs, which was contracted by the People’s Bank of China to facilitate the digital yuan infrastructure, opened over 113,000 personal wallets and 8,859 public wallets, belonging to various merchants, companies, and organizations.
The most astonishing piece of information, however, was the number of transactions that utilized the digital yuan. Zou said that the company processed more than 3.12 million transactions during the pilot, handling more than 1.1 billion yuan in volume.
During the Web3 Conference hosted by the Web3 Foundation, Zou Chuanwei, an economist at Wanxiang Labs, revealed some of the numbers surrounding the “red packet” project. Zou quoted data first shared by Fan Yifei, the vice governor of the People’s Bank of China, who commented last week on the bank’s plan for the development of the digital yuan.