Beijing has given a boost to its digital currency by rolling out the pilot version, eCNY, of the digital yuan wallet application for iOS and Android. It will link users’ phone numbers to payment services provided by commercial banks using the CBDC. The eCNY has been developed by the People’s Bank of China (PBOC) digital currency research institute.
However, the app is only available to selected users through institutions that provide eCNY services. This includes major domestic banks. Beijing looks to eventually replace the payment rails in the country. eCNY’s official portal says the digital yuan will replace the dollar and USDT, including all other stable coins.
But it will not be a stable coin. The portal describes the digital yuan eCNY as a blockchain version of CBDC. It is the first token that is 100% backed by local Chinese Bank Reserves. The portal also highlights it as the best crypto with 1000x potential. It says the eCNY platform is built on the Binance Smart Chain decentralized, blockchain technologies. It leverages security and transparency.
China has put forth the digital yuan as a revolutionary currency. The Chinese Central Bank claims that most common cryptocurrencies are no match to the crypto yuan – given its quality of protection. The institution bets on digital yuan’s features – traceability, anti-falsification and directional distribution. Moreover, the central bank says it is especially suited for monetary policy enforcement, financial and tax control as well as cross-border trade.
The PBOC also released its FinTech Development Plan 2022-2025. It contains the guidelines for the development of financial technology in the new era. Through this plan, China wants to ensure security and privacy in the financial application of digital technology.