China’s new mobile payment rules will accelerate digital yuan adoption

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In China, from March 2022, all merchants will be required to use barcodes for business, which could facilitate the development of e-CNY transactions.

New rules of the People’s Bank of China (PBOC)
stipulate the use of barcodes for mobile payments and aims to combat barcodes for illegal gambling.

Analyst at Chinese Securities Company Everbright Huaan Securities November 28
statedthat the new rules could improve the security of payments and limit tax evasion. The expert believes that in the long term, the new rules can help promote the digital yuan.

“In this way, the country’s banking system could potentially regain its dominance in payments as e-CNY continues to spread throughout the country.”

The CEO of Israeli cybersecurity firm BitMint, Amnon Samid, believes the new measures could support the adoption of the digital yuan when e-CNY transactions from phone to phone or digital wallet to cold wallet are implemented.

“We need to understand the main difference between digital currency and mobile payments. The digital yuan is money, and mobile payments are the vehicle for it. ”

Matteo Giovannini, senior financial manager at Industrial and Commercial Bank of China, said the Chinese authorities are committed to creating a safer payment ecosystem that discourages any form of crime such as gambling, tax evasion and money laundering. In his opinion, this process will lay the ideal foundation for accelerating the advancement and widespread deployment of China’s state digital currency as a result of improved risk management and greater transparency.

China is clearing the space of digital crime to create favorable conditions for the introduction of the digital yuan. Recently, the Director of the Anti-Money Laundering Monitoring and Analysis Center of the People’s Bank of China called for the development of a system to combat the illegal use of cryptocurrencies and NFTs. Amid cases of digital yuan fraud, the authorities of Xiong’an District urged the population to be vigilant when dealing with state digital currency.

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