Ecny wechat pay12/14/2022 ![]() China’s notorious Social Credit System tracks citizens’ credit scores, spending patterns and even behaviour and “trustworthiness”. It also heralds an objectively unhealthy level of state involvement in a citizen’s personal finances. This would not only provide the Chinese Communist Party (CCP) with an invaluable treasure trove of data that could help them study and predict consumer behaviour, but would also give the Party yet another tool to monitor its citizens with. Given that eCNY is issued by the People’s Bank of China, every transaction made would be tracked and recorded by the state. Widespread adoption of the digital yuan would take away value from the private-sector payments tsars and hurt the clout of their mammoth parent companies. The hegemony of payments apps like Alipay and WeChat Pay (which combined have a user base of 1.9 billion ) vis-a-vis state-owned banks would be threatened by eCNY.Īlready, these companies are reeling under increasing regulatory oversight from Beijing, with the Ant Group being cajoled to restructure itself as a holding company and Alibaba imposed with a record $2.8bn fine. It would help the government keep the country’s huge tech conglomerates in check. The impending rise of the digital yuan can have significant ramifications. Why is China Eager to Roll Out a National Cryptocurrency? #ECNY WECHAT PAY CODE#Moreover, these transactions can take place even without an internet connection.Īs for how you can pay using digital renminbi, the process is similar to typical digital payments - you pay either by scanning the retailer’s QR code or producing a QR code on your phone for the retailer to scan. The money is stored in your mobile phone (this is where it’s similar to mobile money ). While the government has not given an official launch date, they reportedly want to roll out eCNY to the general public before the 2022 Winter Olympics, which is scheduled to be held in China.Īs a state-backed cryptocurrency, eCNY was inspired by the likes of Bitcoin and Ethereum, but it differs in its (1) lack of user anonymity, (2) central bank-controlled centralisation and (3) the absence of blockchain technology. #ECNY WECHAT PAY TRIAL#Since then, the trial has expanded to bigger cities like Beijing and Shanghai. The idea was to give people money to spend at a variety of retail stores and judge if they found it convenient and adaptable. In four cities - Shenzhen, Suzhou, Xiongan and Chengdu - trial participants were chosen via lottery and given 200 eCNY ($31) each by authorities. Last year, China’s experiment moved out of research rooms into large-scale testing. ![]() ![]() They named it the electronic yuan (eCNY). In 2014, even as cryptocurrencies like Bitcoin were becoming popular, China’s central bank set up an internal group to study the feasibility of a state-backed digital currency of its own.
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