The People’s Bank Of China And The Digital Yuan: Will It Take Over The Dominance Of Alibaba?
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The digital currency from the People’s Bank of China is allegedly going to be used in order to target the dominance of technology conglomerates such as Alibaba and Tencent in the digital payments Industry.
According to a report by the Financial Times, the bank will use DCEP to provide banks with further opportunities in the area of digital payments. The senior official of the Hong Kong with monetary authority spoke in regards to the matter saying:
“They [PBoC] want a more level playing field for the banks. Retail payments are so dominated by Alibaba and Tencent while banks are less active in electronic payments.”
Many reports have said that the previous companies were both part of an active project in regards to the digital yuan. Looking back into July though, reports from the South China morning post indicated that the country was launching its own digital currency as an alternative payment option to Alipay and WeChat pay.