Bank of China Explores SIM Card Payments for Digital Yuan
Bank of China has entered into a partnership with major telecommunication operators, China Telecom and China Unicom, to conduct a trial of SIM card payments for the digital yuan.
The objective is to enable users to make payments using their mobile phones through the bank’s e-CNY app, which will be connected to “super SIM cards” equipped with near-field communication (NFC) technology. This innovative approach allows payments to be processed even when the phone is turned off. Initially, this payment feature will be available on selected Android phones in specific pilot areas in China.
This initiative aligns with China’s recent efforts to expand the use cases of its central bank digital currency (CBDC), particularly in the context of its Belt and Road Initiative and cross-border trades. China plans to extend the usage of the digital yuan to include tax payments and utility services within the country.
In the city of Guangzhou, it is now possible to pay for public bus rides using the digital yuan on select transit routes. Passengers can download the digital yuan app, deposit funds, and simply scan the QR code in the bus payment section to pay for their ride.
Furthermore, Hong Kong has launched an e-HKD pilot program, following the release of a whitepaper by the Hong Kong Monetary Authority (HKMA) in October 2021, which explored the potential of a retail CBDC. These developments demonstrate the growing momentum and exploration of digital currencies in the region.
This initiative aligns with China’s recent efforts to expand the use cases of its central bank digital currency (CBDC), particularly in the context of its Belt and Road Initiative and cross-border trades. China plans to extend the usage of the digital yuan to include tax payments and utility services within the country.
In the city of Guangzhou, it is now possible to pay for public bus rides using the digital yuan on select transit routes. Passengers can download the digital yuan app, deposit funds, and simply scan the QR code in the bus payment section to pay for their ride.
Furthermore, Hong Kong has launched an e-HKD pilot program, following the release of a whitepaper by the Hong Kong Monetary Authority (HKMA) in October 2021, which explored the potential of a retail CBDC. These developments demonstrate the growing momentum and exploration of digital currencies in the region.
