In a recent article in the Chinese press, a journalist argued there’s still a lot to be done before China’s digital yuan is ready for mass adoption once the pilot phase ends. While the central bank digital currency (CBDC) wallet is now available to all in China through WeChat Pay and in the Apple, Huawei, Xiaomi and other Android app stores, only people in certain pilot regions can sign up to use the wallet. Next month’s Beijing Olympics is one of the pilot locations.
Author Mu Chu argued that four sets of issues need resolving to see broad adoption of the digital currency. Two relate to addressing fraud and scams and resolving the legal position of the digital yuan, which have both been highlighted as tasks by the central bank’s Digital Currency Research Institute.
Additionally, Mu claimed that the central bank is currently responsible for supervision, AML, chargebacks, and dealing with fraud. He envisions the roles beyond supervision becoming more decentralized. While we’d agree, we expect that’s probably happening already through the state banks.
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