1/1/2023 0 Comments Ecny wechat pay morningpost![]() ![]() Other countries have shown that people without traditional bank accounts can jump straight to using crypto wallets, a situation China wants to avoid. These figures are mainly driven by China’s rural population where banking institutions have little presence. These are not available in Alipay or WeChat.Ĭhina has just 54% internet penetration 3 (The US is at 89%).ĭigi-yuan transactions only need a digital wallet, whereas Alipay and WeChat require an active bank account to withdraw from.Ģ0% of China’s huge population remains “unbanked” (US = 7%). Ecny wechat pay morningpost Offline#The digi-yuan can also offer some benefits over Alipay and WeChat Pay:ĭigi-yuan allows offline transactions. It has a greater than 50% share of the market and combined with WeChat Pay, it helps account for more than two-thirds of the market. Looking at our chart above, that counts against Alipay on two counts. “Any nonbank service provider with half the online transactions market, or two entities with a combined two-thirds share, could be subject to antitrust probes.” South China Morning Post (owned by Alibaba) reports that China has now defined what it sees as a “monopoly”: Ant will even have to pass the user data from its lending decisions to a state-owned system. The government is reportedly set to force the breakup of Ant Group’s fintech apps 2, including Alipay. In 2020, the Chinese government stopped the IPO of Ant Group, Alipay’s parent company. That’s not a development the Chinese state welcomes, let’s say. Let’s take a step backĪs more people enter the world of mobile payments, they enter the increasing sphere of influence of these tech giants. That’s a hypothetical situation, but you could imagine the joining of those dots.Īnd something sweet for dessert: The digi-yuan is more like a stablecoin than a cryptocurrency, if we want to make that comparison.Īnd let’s not forget China banned cryptocurrency in 2021. It even shows the image of these bad-ass criminals at local train stations to shame them into reform.Īdd in a digital currency and they could automatically fine people, too. For example, China has facial recognition technology that will automatically identify jaywalkers. There are already suggestions that the digi-yuan could be tied to other elements of the state system. It seems the state can see people’s identities, but individuals can choose to cloak these details from retail institutions. Does it just reveal your first name or initials? The reports I have read say the digi-yuan can offer “some anonymity”, when anonymity seems rather more binary to me. How does the digi-yuan work?įor main course: If Bitcoin is anonymous, then the Chinese state version is, well, it’s going to be more intrusive. It’s perfectly charming, but if you had asked me to guess where the Hoover Institution policy seminar on central bank currency had occurred on 27 January 2021, I reckon I’d have guessed Basel. □ Incidentally, have you ever been to the Swiss city of Basel? Hoover Institution policy seminar, Basel, 27 January 2021 “If digital money is to exist, the central bank must play a pivotal role, guaranteeing the stability of value, ensuring the elasticity of the aggregate supply of such money, and overseeing the overall security of the system.” That’s well over 100 times as much as the digi-yuan app.īut the digi-yuan has the benefit of state support, as it is issued by the central bank. That sounds like a lot - but to put it in perspective, the Alipay app (discussed in more detail later) processes $1.6 trillion of transactions on average each month. India has just announced that a digital rupee will launch this year.Ĭhina’s digi-yuan had over 250 million users within a few weeks of its expanded beta in the run-up to the games, with 87.5bn yuan ($13.78bn) of transactions already processed. The Bahamas was the first country to launch a retail e-currency (the suave-sounding Sand Dollar) and China is the first major economy to do so. ![]() They are generally based on distributed (decentralised) ledger technology, offering privacy, security, and traceability. They are more efficient and they cut out intermediaries. ![]() ![]() Wholesale: For transactions between financial institutions. There are two types of digital currency a central bank can create: The US and UK are quite far behind other large economies. Lucky winners received some digi-yuan to spend in local stores.ħ6 countries are working on digital currencies that will replace cash, but most are at the experimental stage. China has been testing a digital currency since 2020, when it launched a number of exciting “lotteries”. ![]()
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