WeBank and MYbank to trial Digital Yuan

Following four state-owned banks, two commercial bank in China, part of fintech giants Tencent and Ant Group, have now also started testing the digital yuan by offering it to their customers.

WeBank and MYbank

By referring to previously used anonymous sources, Bloomberg reports that the two banks referred to in the above are WeBank (Tencent) and Mybank (Ant Group). These two commercial banks will reportedly start offering their customers the same services as four Chinese state-owned banks that are already offering the digital yuan to their customers: Industrial and Commercial Bank of China; China Construction Bank; Agricultural Bank of China; Bank of China.

The participation of WeBank and Mybank in the digital yan constitutes a clear sign of uniformity with Chinese private banks entering the digital yuan test room for the first time. It was previously reported that the Chinese Central Bank was intended to compete with Tencent’s WeChat Pay and Ant’s AliPay. However, it was clarified that this is not the case and they would rather cooperate.

Digital Currency

A central bank digital currency is also known as CBDC and Central Banks across the globe are looking to make it a priority. Just like paper banknotes, CBDCs are a means of payment, a unit of account and a store of value. And like paper money, each unit is uniquely identifiable to prevent counterfeiting. CBDC will become part of the total money supply, along with other forms of money such as cash and scriptural money. CBDC can be stored, transferred and sent by a variety of digital payment systems and services.

While CBDC do not require to run on a blockchain, many central banks are considering the option as blockchain provides the technological architecture to keep track of transactions.

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