JD.com employees in Shanghai, Zhejiang and Guangdong have been paid in e-CNY via WeChat. This is another step towards a cashless society, which is becoming increasingly more prevalent in China. Workers have now started to receive their salaries via Tencent’s WeChat Pay. The new payment system is the first of its kind in China, and is an alternative to the traditional bank transfer.
JD.com, China’s leading online retailer, has been using virtual money as salary for over 100 staff. According to the South China Morning Post (SCMP), the online retailer has employed around 100 people who receive part of their salary in the form of virtual money. The company has been paying staff in the form of e-CNY, which is an electronic currency, instead of Chinese Yuan.
China, the world’s most populous country, has outpaced many others when it comes to creating a central bank digital currency. China’s digital yuan is getting closer to widespread adoption every day, with the support of leading companies such as e-commerce giant JD.com, Mastercard, Ant Group and Tencent.
China’s digital yuan seems to be nearing completion, JD.com employees are paid in electronic Chinese yuan
The Chinese Central Bank’s (CBDC) digital currency, developed by the People’s Bank of China (PBoC), has many names. Some call it Chinese electronic yuan, others digital yuan or digital yuan, it is also called electronic payment in digital currency (DCEP).
The country has been developing CBDCs for several years, and the PBoC recently rolled out the project through banks and businesses that accept it and distribute digital red envelopes.
It was announced in late March that Chinese citizens could apply for a digital yuan wallet at six state-owned financial institutions. The PBoC is currently working with e-commerce company JD.com and with the help of Alibaba, as some JD.com employees are paid in digital yuan.
JD.com employees participating in the study reportedly began the program in January. For JD.com, this is not its first attempt with CBDC: The company participated in drop-in promotions and Chinese citizens could use the digital currency to pay for items in its online store.
Moreover, Alibaba Group was also involved before the employees were paid by the CBDC, as the central bank worked directly with an Alibaba Group fintech company called Ant Group.
Alibaba Group, Tencent and Ant Group are among the key players in the PBoC
According to a recent report by voanews.com, Tencent and Ant Group have supported the construction of the CBDC for the past three years. The digital yuan would not only cooperate with the Ant Group, but also use an Ant database, Ocean Base. Ant Group was spun off from Ocean Base in June 2020 and launched an in-house database service and mobile development platform called mPaaS.
In March, Bitcoin.com News reported that Ma Changchun, director of the Digital Currency Research Institute at the People’s Bank of China. A PBoC official said the digital yuan would not be completely anonymous, but could offer controlled privacy. Ultimately, however, the Communist Party is in control, Francis Luong, CEO of Hong Kong-based Geo Securities Ltd. said recently.
Chinese authorities tell Ant to hand over your Big Data to the central bank, says Francis Lun. The data will not remain in private hands, because the Communist Party is in charge.
Mastercard will process cross-border transactions in digital yuan
JD.com, Ant Group and Tencent were the main CBDC players in China, but Mastercard now wants to join in. The South China Morning Post (SCMP) newspaper reported that Mastercard wants to play a role in China’s CBDC system by helping with cross-border transactions.
Ling Hai, co-president of Mastercard Asia-Pacific, told SCMP that the payment company is waiting for regulatory approval to launch its digital yuan card business domestically. Mastercard is already working with the Central Bank of The Bahamas, the Caribbean island that recently issued a sovereign digital currency, the Sand Dollar.
The PBoC has approved Mastercard’s application for the 2020 venture, and the payment company is currently working with Chinese regulators to obtain a license.
Once we have the license, our first priority will be to publicize the fact that our brand is also synonymous with the Chinese domestic market, said Ling Hai, head of Mastercard Asia Pacific.
What do you think of the Chinese CBDC? Let us know what you think in the comments below.
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Alibaba, Ant Group, Ant Database, Bahamas, CBDC, central bank, central bank digital currency, China, Chinese banks, DCEP, DCEP Wallet, Digital, Digital Red Envelopes, Digital Yuan, e-CNY, Francis Lun, JD.com, JD.com employees, Ling Hai, MasterCard, PBOC, People’s Bank of China, tencent
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