A Chinese Central Bank Official Changchun Mu stated that China’s digital yuan, also known as central Bank digital currency (CBDC), should be usable for all retail payments.
Changchun Mu stated, “First of all, what needs to be upgraded is the payment tool used in retail scenarios, that is, digital RMB is used as the payment tool in all retail scenarios.”
The head of the digital currency research institute at the People’s Bank of China (PBOC), Changchun Mu, stated during a trade forum in Beijing that companies offering digital wallets like WeChat and Alipay, as well as traditional banks with mobile banking apps, and even other payment apps connected to the digital yuan, must ensure to follow necessary rules and regulations.
Local media in China, The Paper reported that to operate in this space, one must obtain the required financial licenses.
Changchun Mu said, “In the short term, we can first unify the QR code standard in terms of technical standards and achieve mutual recognition of barcodes. In the long term, we will steadily upgrade payment tools.”
The digital yuan can now be employed for settling transactions in the financial market and smart contracts for making payments accurate and efficient.
The report stated, “Digital yuan can be used for settlement, and smart contracts can be used to implement payment versus payment (DVP) and payment delivery (PVP) to improve wholesale payment efficiency.”
Also Read: China Introduced Digital Yuan for Payments in Air Travel
