China’s plan to introduce its digital currency, called the digital yuan, is getting a lot of help from its tech conglomerate.
Chinese e-commerce giant JD.com, which competes with Alibaba, said on Monday that it began paying some employees’ salaries in digital yuan since January, which is the default version of the country’s physical currency.
China has been busy experimenting with digital currency over the past few months, and in October, Shenzhen, a southern city known for its progressive economic policies, distributed 10 million yuan worth of digital currency to 500,000 residents, who could then use the money to shop at some merchants. Online and offline retail.
Many other large Chinese cities have followed the example of Shenzhen, and residents of these regions must apply through select banks to start receiving and paying in digital yuan.
The digital currency initiative is a team effort involving regulators, commercial banks, and technology solution providers in China.
The scheme still simulates how the physical yuan is traded today. Under the direction of the central bank, the six major commercial banks in China distribute the digital yuan to smaller banks and a network of technology solution providers that can help bring more use cases into new electronic money. .
JD.com has partnered with Industrial and Commercial Bank of China ICBC to deposit digital income.
The e-commerce giant has become one of the first institutions in China to pay wages in digital yuan, and some government workers in the eastern city of Suzhou in August began getting their salaries with digital money.
Major Chinese technology companies in all fields have actively participated in building the yuan’s digital ecosystem, helping the central government better track money flows.
Apart from JD.com, the Bilibili video streaming platform, on-demand service provider Meituan, and the Didi app have also started accepting digital yuan for user purchases.
Tencent became a giant for games and social networks One of my operators Digital Yuan is involved in the design, research, development and operational work of electronic money.
The Ant Group, which is undergoing a major overhaul after the stalled initial public offering, has teamed up with the central bank to work on Infrastructure building To transfer money digitally.
And Huawei, the telecom equipment giant, launched for the first time a wallet through one of its smart phone models, so that the wallet allows users to spend the digital yuan on the spot even if the device is not connected to the Internet.