September 18, 2020

Digital yuan will reduce the influence of Alibaba and Tencent?

Shown information that China's National Bank plans to use its electronic system of electronic currencies (DCEP) (more one name of the digital currency of the central bank) to resist domination in the digital payments sector by tech giants Alibaba and Tencent.

Prior to this, the central bank had taken from the mainAnti-monopoly agency for propaganda in relation to Alipau and WeChat Pau due to inadequate competition and obstacles to the work

For this moment a financial subsidiary companyAlibaba Alipau and WeChat Pawe of Tencent control the majority of digital payments all over China, while banks are far from them. In the first quarter of 2020, Alipau processed almost 56% of all mobile payments in China.

Consistent with information obtained by the Financial Times from some central bank staff, the PBoC will use DCEP to supply the bank with ready-to-use resources.

Head of the Asian Research Department of theAn international bank said that the former PBoC governor, Zhou Xiaochuan, allowed Alipau and WeChat Pau to "return to work," although he received complaints from the whale.

In March, it was reported that Alibaba and Tencent were active participants in the digital yuan project, however, a number of CMI have verified this information.

Other experts believe that DCEP will not beto oppose Alipau and WeChat Power, and the speedy integrates them into the fast digital payment system. It should be noted that Alipau has several patents associated with the digital currency of China, which indicates that the company has not exited the game.