The new update will allow users of the digital yuan app to top-up via Mastercard and Visa payment options as People’s Bank of China seeks to position the CBDC to compete with other payment platforms in the country.
As digital renminbi uses the latest network and mobile payment technology, the director of the Digital Currency Research Institute of the PBoC Mu Changchun eyes using it for all retail transactions.
As China’s data shows, businesses and governments are interested in digital currencies, so focusing on legal compliance and enterprise usage will likely lead to the widespread adoption of Bitcoin.
The move, which began on July 18, follows the launch of a digital yuan shopping festival organized by the Bank of China (Hong Kong) Limited to promote the international usage of the CBDC.
Shanghai’s plans target the development of key sectors, the protection of the environment, and improving the management of operations using blockchain and digital yuan.
Apart from integrating a new wave of cross-border functionalities in its digital yuan, China is looking to drive adoption rates through retail settlements using its CBDC and the Singapore dollar.
Aside from the CBDC functionality, the Bank of China stated that the SIM cards may support several applications, including access control, car keys, and a digital identity system.
DBS Bank backs the mass adoption of China's CBDC, laying plans to launch a new offering that would allow mainland customers to receive payments in digital yuan.
The pilot will run from July 1 until September 30 and is designed to enable administrators to test-run a full-scale application of the digital yuan.
One of the changes of the new regime is abolishing the 2022 “Guidelines for the Spot Clearing Business of Bulk Commodities” in favor of the revised edition in May 2023.
The CBDC pilot initiative hit a road bump following several user complaints, including the limited number of merchants accepting the digital yuan and the lack of expertise in operating the system.
Banking officials state that relying on CBDCs for SME loans can ensure "the authenticity and credibility of the closed-loop circulation of credit funds.”
