Bank of China: Platforms must offer digital retail payment option in Yuan

In the short term, e-commerce platforms may integrate the CBDC via QR codes.

As China's central bank digital currency (CBDC), digital yaun, undergoes technology and business upgrades, wallet providers are expected to facilitate payment options in all retail scenarios, according to a statement made by Changchun Mu, Director of Digital Currency. People's Bank of China Research Institute on September 3.

In a speech at the annual China International Service Fair, Mu said the digital yuan has "undergone a major upgrade" in terms of "organizational forms" and business model. Now it's the payment tools' turn to be upgraded.

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Mu mentioned commercial banking apps like WeChat and Alipay, reminding them of their obligation to comply with regulations. In the short term, platforms can focus on implementing CBDC QR codes while improving payment tools in the long term, according to Mu.

The manager also mentioned wholesale payments. According to Mu, there is no need to completely change the current interbank payment and settlement systems; it would suffice to integrate the CBDC payment option. However, no technical details of an integration were mentioned during the speech.

China continues to work on digital infrastructure backed by blockchain but fully controlled. In August, Chinese government officials unveiled a new blockchain-powered data exchange. The newly established Hangzhou Data Exchange will streamline the exchange...