China’s central bank reveals physical CBDC card with dynamic QR codes

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As a seasoned crypto investor with a keen interest in global financial systems and a soft spot for technology advancements, I find myself intrigued by China’s latest move to roll out a digital yuan hard wallet. Having witnessed the rapid growth of mobile payments in China, driven primarily by WeChat Pay and Alipay, it’s fascinating to see Beijing pushing for a state-controlled digital currency.

The Digital Wallet for the Chinese Yuan, created by the People’s Bank of China, features dynamic QR codes and allows offline transactions, demonstrating its advanced capabilities.

China is progressing with the implementation of its central bank digital currency, often referred to as the digital yuan or e-CNY. Recently, they have introduced a payment card resembling traditional debit or credit cards for this purpose. As reported by Global Times on November 7, this new technology offers a physical visual card that enables its users to make both online and offline transactions.

At the 18th Shenzhen International Financial Expo, the digital yuan card was introduced. This versatile card offers two payment methods: “tap-to-pay” and “scan-to-pay.” With these options, merchants can receive payments not only through traditional POS terminals but also through scanners or mobile devices.

According to the report, this 1mm-thick device also comes equipped with a screen that shows account balance, transaction details, and dynamic QR codes for making payments. The digital yuan hard wallet was initially introduced in pilot programs in 2021 and has since been compatible with the HarmonyOS system, eliminating the need for a separate app to access it.

Reports from local Chinese news sources indicate that the wallet can now be utilized for public transportation payments in urban areas such as Qingdao, located within the eastern province of Shandong.

Although the new digital yuan was launched, it hasn’t managed to achieve substantial popularity since its introduction in 2020. Some authorities have expressed reluctance to hold their funds in the government-managed digital currency because they are apprehensive about the lack of earning potential and limited functionality.

Simultaneously, it appears that Beijing is allegedly compelling domestic payment titans to reduce their market influence to foster room for the digital yuan. Previous reports from crypto.news suggested that Tencent Holdings are experiencing regulatory pressure in China, where the mobile payment landscape is primarily controlled by WeChat Pay and Alipay from Ant Group, despite the presence of around 185 non-bank payment entities.

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2024-11-08 13:08