China’s Digital Yuan App Testing Credit Card Repayments
Apart from the scenarios of transferring and payment, China’s digital national currency has also begun to test the “credit card repayment”, the large user entry.
On September 21, the plan of China (Beijing) Free Trade Pilot was announced, proposing to support the establishment of financial science and technology center for the Digital Currency Research Institute of China’s central bank (PBOC). The establishment of the trade finance blockchain standard system is based on the trade finance blockchain platform of the PBOC, which is under strict regulation.
Beijing is another city supporting the construction of digital currency pilot. Before this, Suzhou has also announced that it has been approved to carry out three major innovation pilot projects: National Small and Micro Enterprise Digital Credit Reporting Pilot, Digital Currency, and Financial Technology Innovation Supervision.
On the same day, the Digital Currency Research Institute of the PBOC and JD Digits reached strategic cooperation. The two sides will jointly promote the construction of a blockchain technology platform based on the digital yuan project as well as combine with the existing scene of JD group. Besides they will jointly promote the innovation of mobile application of digital yuan and online and offline scenarios as well as the ecological construction of digital yuan wallet.
The current work on the pilot projects focuses on testing digital yuan payments for transportation card recharge, retail, catering, and other petty payments areas, which are similar to the scenarios of electronic payment platforms and payment experience. The biggest problem is whether to access the third-party payment and obtain the merchant end.
According to the insiders, digital yuan is still in large-scale pilot projects in Shenzhen, Suzhou, Xiong’an. the four major banks are developing their own proprietary digital apps. Some banks develop apps called “digital currency”, while some banks adopt animal names.
As early as 2014, the People’s Bank of China has set up a special team to study issues regarding the framework of digital currency issuance, key technologies, circulation environment, and relevant international experience. On Aug. 19, the Shenzhen Municipal Financial Supervision and Administration Bureau made the work dynamics of their project public. According to the official government website, projects involving digital currencies have so far made “positive progress.” The projects that have shown the best results were focused on innovation in financial technologies such as applying digital currencies to mobile payments.