On similar lines, sometime back, Indonesia’s central bank also announced plans to launch a digital currency to ‘fight’ private cryptocurrencies. Which in turn, creates a level playing field for new payment providers, as per the professor. Instead, to “provide a payment infrastructure that then provides interoperability for any payment provider, who wants to use that payment network.” with Alipay and WeChat Pay handling most payments. Therefore, going forward, Prasad explained that the idea to set up a CBDC should not be to directly compete with these payment providers. The People’s Bank of China reported that its official eCNY app had 261 million users at the end of 2021. “I think there is a concern that these two major payment providers have dominated the payment space…now control massive flows of data.” Meanwhile, McKinsey also reported that e-CNY saw moderate adoption as WeChat Pay and Alipay remain popular options. “PBOC is trying to create a digital currency that competes with these payment providers, for the use case for a CBDC I think, it’s actually pretty weak in China.” Chinas sovereign digital currency, known as e-CNY, is on track to achieve greater exposure in more cities across the mainland, as leading domestic mobile payments providers Alipay and WeChat Pay. When a comparable volume for the digital yuan was achieved in 18 months. ![]() It is also noteworthy that Alibaba is a huge platform that attracted a sales figure close to $85 billion in just around 11 days. And also to make sure that the payment space is not dominated by two payment providers.”Īs per a recent WSJ report, e-CNY is not offered on platforms by e-commerce giant Alibaba. “The People’s Bank of China wants to make sure that a digital version of the yuan is relevant, in terms of making sure that central bank money remains tractable at the retail level.
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