We know that China’s central bank, the People’s Bank of China, is getting ready to launch a
Central Bank Digital Currency (CBDC). The
rumors are that the launch involves four state banks and the leading digital payments organizations, Alipay, WePay and UnionPay.
Between them, the latter three account for 98% of online payments. Changes in 2018 mean that the central bank might find integration easier than you’d imagine.
Firstly, Unionpay is the Chinese card issuer. It’s the equivalent of VISA, except it is state-owned. Its Chairman was at the central bank for three decades. Prior to digital payments companies Alipay and WePay getting a foothold, Unionpay had a monopoly on digital payments.
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