UnionPay will add support for the digital yuan

The retailers will be able to receive payments in the national cryptocurrency through third-party operators

30.03.2022 - 14:55

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What’s new? UnionPay, China’s national payment system, will launch a self-service platform for merchants who want to use digital yuan (e-CNY). This is reported by Cryptonews.

Information on the Cryptonews website

What is the advantage of the payment system? With the platform, the retailers will be able to register and receive payments in central bank digital currency (CBDC) through third-party operators. The network will allow customers to make purchases using the digital yuan through apps. For now, the platform will only support e-CNY wallets, with wallets from other financial institutions expected to be added in the future.

UnionPay has become the first payment system in China to sign a partnership agreement with the Digital Currency Research Institute.

What had happened before? During the Olympic Games in February 2022, foreigners were more likely to use the digital yuan than native Chinese. According to Reuters, around 2 million e-CNY ($314 200 at the exchange rate as of March 30) were used daily.

What is e-CNY? The digital yuan is a digital form of China’s national currency. Work on its creation began in 2019, with developers announcing in December that the CBDC was ready for testing. In May 2020, the currency was introduced in four cities as part of a pilot program.

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