China has started to advertise the digital yuan
Major Chinese banks have begun promoting digital yuan payments in Shanghai instead of WeChat Pay and AliPay ahead of the May 5 online shopping festival.
Six large banks in the country began to work with buyers and sellers. Financial companies intend to convince them to start digital yuan wallets. Leading to banks wanting to reduce the proportion of payments that channel via WeChat Pay from Tencent and AliPay from Alibaba subsidiary Ant Group. The goal of promoting the state digital currency (CBDC) was the desire of the state to gain control over big data, which is now in the hands of companies.
China began a pilot test program for a national digital currency in 2020. The experiment operates in four major cities, including Shanghai. From March 23, 2021, the six largest banks in the country began issuing digital yuan wallets to their customers.
Banks are not promoting the national digital currency as an alternative to AliPay or WeChat Pay openly. Such an approach would contradict the position of the People’s Bank of China, which stated that the digital yuan would not compete with payment services.
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