Do we see another surprise this coming 2020 Winter Olympics?
Host once more of the biggest sporting event in the world, The People’s Bank of China is lining up innovation using digital yuan at the most-anticipated athletic gathering.
Sun Guofeng, the lead of the monetary policy department at PboC, admitted in a news report from Reuters that while this is an exciting innovation to add, the time table for the project is still yet to be disclosed.
However, the executive reconfirmed that it has the probability of it to put into flesh and to be launched before the 2022 Winter Olympic Games,
The news comes as China is reported to integrate the digital yuan into one of the competition’s unique highlights. The Chinese central bank is currently holding trials of its digital currency across Shenzhen, Suzhou, Xiongan, and Chengdu.
The bank was also planning to roll out the digital currency for pilot tests across other regions, including Beijing, Tianjin, Hebei, and Hong Kong’s Greater Bay Area.
In the meantime, to get the currency or yuan, one must download an app and link holder’s smartphone number.
Many say that this method is similar to Alibaba’s popular Alipay platform, counting the use of bar codes and QR codes to make payments.
As of press time, there were only recorded small transactions using digital yuan. Referring to the legality and competency for conversion, a recent official statement from the bank said that these could be converted into banknotes and legal tender, with ration conversion at 1:1.
There are still announcements and development for this news. So make sure to catch our updates on this matter.
WHAT’S THE EFFECT?
Through this initiative, it is projected to help make China’s economic system more resilient.
Nowadays, cash is given less priority as digital wallets like Alipay and Tencent Holdings.
Through enabling transfers with no need for an internet connection, the digital-yuan app would safeguard that commerce can continue as long as power is hand.
A phone number alone would permit only small transactions while providing proof of identity, or a photo of a debit card would raise the limit. Speaking with a bank representative in person could allow for the cap to be removed entirely.
Suspected criminal activity will be uncovered via transaction histories. Artificial intelligence could flag payments as possible illegal gambling. For example, if they take place late at night, start at the 10 yuan ($1.40) minimum, and gradually increase in size before abruptly halting, Mu said.