Soon after the China central bank introduced its digital currency, several big banks are now actively promoting it as more effective and superior to the country’s two most used payment methods, WeChat and Alipay.
Days ago, Reuters reported that as many as fifteen prominent banks across China are promoting the CBDC. This comes ahead of a major online shopping event in Shanghai scheduled in May this year. Currently, most of the city’s banks urge their customers to install the application and participate in the event through their e-CNY or CBDC digital currency.
Experts suggest that the step by China’s central bank would ultimately pave the way for CBDC to bypass the conventional modes of payment, including WeChat and Alipay – the two most famous in China. The Reuters‘ report further stated that an official, who the country’s central bank has appointed to promote the digital currency in Shanghai, claimed it to be far superior to the traditional payment methods.
People will realize that digital yuan payment is so convenient that I don’t have to rely on Alipay or WeChat Pay anymore.
Interestingly, a senior Chinese official maintained that it does not see the two payment platforms as its competition. Instead, it aims to give back up and ensure financial stability in Chinese markets.
Yet, the recent developments in China tell a different story as it has been clamping down major tech firms, including Ali Baba. This month, the Beijing regime hit the B2B giant with a whopping $2.8 billion in fine over accusations of illicit activities in the market.