Tencent and Ant-backed banks are said to pilot China's digital yuan


Two more commercial banks, this time backed by fintech giants Tencent and Ant Group, are said to trial China's digital yuan.

Bloomberg reported the news on Monday, citing people familiar with the matter. Tencent-backed WeBank and Ant-backed MYbank will reportedly offer the same features as China's state-owned commercial banks that piloted digital yuan.

In their tests, four state-owned commercial banks — the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China — offered to activate digital yuan wallets to transfer money and make payments. Users of WeBank and MYbank will also be able to do the same.

WeBank and MYbank's participation would mean the first time China's private sector banks are entering the digital yuan trial space. Previously there were reports that China's central bank would compete with Tencent and Ant's payment apps, but later the central bank clarified that digital yuan wouldn't compete with AliPay or WeChat Pay.

China's increasing trials suggest that the country's digital currency is becoming real by the day. China first began researching digital currencies over six years ago to cut the cost of circulating paper money and increase policymakers' control over the money supply.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC