Bank of China: Platforms must provide digital yuan retail payment option

In the short term, e-commerce platforms can integrate the CBDC through QR codes.

While China’s central bank digital currency (CBDC) goes through technological and business model upgrades, the market should provide an opportunity to include it in all online retail payment options, according to a statement made by Changchun Mu, director of the Digital Currency Research Institute of the People’s Bank of China, on Sept. 3.

Giving a speech at the annual China International Service Trade Fair, Mu expressed the desire of digital yuan developers to see it at hand in every retail scenario. According to the official, Chinese CBDC, officially known as the renminbi, has “undergone a major upgrade” in terms of its “organizational forms” and business model. Now it’s the turn of the payment tools to be upgraded.

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Mu mentioned commercial banks’ apps and such platforms as WeChat and Alipay, reminding them of their obligation to comply with regulations. In the short term, they can focus on implementing the QR codes for CBDC, while upgrading the payment tools in the long term.

The official brought up the wholesale payments issue as well. According to Mu, there is no need to completely change the current interbank payment and settlement systems. It would be enough to integrate the CBDC payment option into it. However, no technical details of such integration were mentioned during the speech.

China continues its work on the blockchain backed, yet fully controlled digital infrastructure. In August, Chinese government officials unveiled a new data exchange powered by blockchain. The newly established Hangzhou Data Exchange will streamline the exchange of corporate information technology data by leveraging distributed ledger technology.

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