Using QR codes, e-commerce platforms now have the potential to include Central Bank Digital Currencies (CBDC) into their own operating systems in the near future.
Changchun Mu, the Director of the Digital Currency Research Institute of the People’s Bank of China, emphasized in a speech delivered on September 3 that as China’s central bank digital currency (CBDC) undergoes technological and business model enhancements, the market should be utilized as an opportunity to integrate it into all online retail payment options.
Mu stated that the developers of the digital yuan desired to make it usable in every conceivable retail setting. He noted that the Chinese CBDC, formerly the renminbi, has significantly changed its organizational structure and business model. The current focus is on enhancing the payment infrastructure.
Mu addressed the applications and prominent platforms of commercial banks, such as WeChat and Alipay, and reminded them of their obligation to comply with regulatory requirements.
In the short term, he suggested implementing QR codes for CBDC while planning long-term payment tool improvements.
Mu addressed the topic of wholesale payments as well. He asserted that there is no need to replace the extant interbank payment and settlement systems completely; instead, integrating the CBDC payment option would suffice.
However, the presentation did not delve into the technical details of such integration.
China continues to advance its digital infrastructure, supported by government-controlled blockchain technology.
In August, Chinese government officials introduced a novel blockchain-powered data exchange. Utilizing distributed ledger technology, the newly established Hangzhou Data Exchange seeks to streamline corporate information technology data exchange.
