The director of the People's Bank of China's Digital Currency Research Institute emphasized the importance of wallet providers enabling digital yuan payments in all retail scenarios.
According to Changchun Mu, director of the People's Bank of China's Digital Currency Research Institute, China's central bank digital currency (CBDC), the digital yuan, is undergoing major upgrades.
On September 3, Mu spoke at the China International Service Trade Fair, emphasizing the importance of wallet providers enabling digital yuan payments in all retail scenarios.
Mu called for compliance with regulations by commercial banking apps like WeChat and Alipay, urging them to implement QR codes for CBDC in the short term while working on long-term upgrades to their payment tools.
Regarding wholesale payments, Mu suggested integrating CBDC payment options into existing interbank payment and settlement systems rather than completely replacing them. However, he did not provide technical details for this integration.
China has been actively developing its blockchain-based digital infrastructure, including the digital yuan. In August, officials unveiled the Hangzhou Data Exchange, which utilizes blockchain to streamline the exchange of corporate IT data.
Mu's remarks highlight China's commitment to ensuring the availability of the digital yuan in all retail payment scenarios, pushing stakeholders to prioritize compliance and get required financial licenses.
The central bank has been testing digital yuan in a number of pilot zones, but wider adoption is still a work in progress. Mu also recommended adopting the digital yuan for wholesale financial market settlement, leveraging smart contracts to improve payment efficiency.
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