digital yuan won't compete with mobile payment apps WeChat and Alipay

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Mu Changchun: digital yuan won't compete with mobile payment apps WeChat and Alipay Mu Changchun, head of the Digital Currency Research Institute of the Central Bank of China, said the digital yuan (DCEP) will be compatible with major mobile payment wallets like WeChat Pay and Alipay.

China Morning Post

According to an article by the South China Morning Post, Mu claims the digital yuan will not compete with WeChat Pay and Alipay: “They don't belong to the same species. WeChat and Alipay are wallets, while DCEP is money for the wallet. " DCEP is currently available to limited users through an exclusive mobile wallet app.

digital wallets

Mu also noted that there are several fake RMB digital wallets on the market, the source said. According to Mu, it will be possible to reduce the impact of counterfeit wallets only if all parties involved, from the central bank to users, take the necessary precautions. As a reminder, China has made rapid progress in implementing its central bank digital currency initiative. Last week, the regulator published a bill providing the regulatory framework and legitimacy for its digital yuan. The central bank is currently conducting pilot trials of its digital currency across the country.

In one of the largest pilot trials, local authorities distributed $ 1.5 million worth of digital yuan to 50,000 of the 1.9 million people who signed up for the giveaway.