Some of China’s largest state banks are actively promoting the digital yuan as a superior means of payment to the country’s two leading payment providers, Alipay and WeChat Pay.
In an April 26 report, Reuters revealed that six of China’s largest banks are promoting China’s nascent central bank-issued digital currency, or CBDC, in Shanghai ahead of an online shopping festival on May 5.
The banks are urging retail outlets and consumers to download the digital wallet and make purchases using the CBDC, or e-CNY. This would bypass the current payment methods of choice for millions of shoppers – Ant Group’s Alipay and Tencent’s WeChat Pay.
The report noted that one bank official appointed to CBDC trial’s rollout in Shanghai under the guidance of the People’s Bank of China specifically described the digital currency as superior to Alipay and WeChat Pay, who stated:
“People will realise that digital yuan payment is so convenient that I don’t have to rely on Alipay or WeChat Pay anymore.”