Beijing will continue its policy of encouraging individuals to use the digital yuan in China.
Fang Yefei, deputy governor of the People’s Bank of China, speaking at a banking conference in Beijing, said the regulator has asked classical payment systems operating in China to ensure the financial compatibility of the digital yuan and traditional remittance methods.
Yefei stressed that the digital yuan (DC/EP or e-CNY) and classic payment systems have a common denominator, which is the digital user profile. This means that there is a commonality between them, which will be expressed in the presence of common digital user profiles, the use of Bluetooth technology, as well as QR codes for financial transactions. All this together increases the level of convenience for users of China’s state digital currency (CBDC), i.e. digital yuan.
At the same time, the People’s Bank of China representative outlined the range of upcoming tasks, which relate to upgrading the security of making transactions digitally to avoid information leaks.
Yefei also said that the People’s Bank of China will continue to promote the use of digital yuan among individuals in that country, including through the “red envelope” mechanism, which involves the distribution of digital yuan in millions of dollars. In addition, the regulator intends to work to increase the number of outlets in China that accept e-CNY for payment.