The People’s Bank of China is seeking to expand the use scenario of digital currencies by central banks. Financial authorities believe that digital renminbi will be more convenient for consumers by deepening interconnectivity with traditional electronic payment platforms.
China’s Central Bank Insists on Expanding Digital Yuan Environment
China’s monetary policy regulator is calling for better integration of the digital renminbi (e-CNY) system with traditional tools for electronic payments. The People’s Bank of China (PBOC) says this will improve convenience for users of the Central Bank Digital Currency (CBDC).
This requires further efforts to expand the use scenarios and environment for the digital renminbi, PBOC Deputy Governor Fan Yifei stressed in a statement at a recent forum on digital finance in Beijing.
Quoted by China.org.cn, a news portal operated by the Chinese government, Fan elaborated that regulations and standards in areas such as digital ID, Bluetooth, and QR codes should be unified to facilitate interconnection of different types of payment systems.
The Vice President also stressed the importance of upgrading relevant technologies to improve the security of digital yuan platforms, prevent users’ sensitive information from being leaked, and eliminate data security risks.
Chinese authorities have distributed millions of e-CNY to promote the digital renminbi and stimulate its use through a series of red envelope campaigns. They have also gradually increased the number of regions covered by the digital renminbi pilot project.
Use cases have also increased significantly, most recently in public transportation: in August, the operator of the Ningbo subway system in the eastern Zhejiang province began accepting RMB payments, and authorities in Guangzhou allowed bus passengers to purchase tickets in the state-issued digital currency.
Image Credit:: Shutterstock, Pixabay, Wiki Commons