China Is Linking New Digital Yuan With QR Code Payment System

China’s central bank is pushing for interconnectivity between its digital yuan and other traditional digital electronic payment tools through universal QR code payments, as the country expands the pilots for its digital currency.

The development of a strong ecosystem for the e-CNY, the country’s central bank digital currency, requires standardization, according to Fan Yifei, a deputy governor of the People’s Bank of China (PBoC), who made this statement at a forum on September 8.

Fan said it is important to promote the unification of digital identity, QR code mechanisms, Bluetooth and near-field communications to allow consumers to scan a QR code for various kinds of payment access.

The remarks come at a time when WeChat Pay and Alipay, both owned by Tencent and Ant Group, are the most popular QR code payment systems in the nation.

The PBoC plans to deploy more smart contracts for the digital yuan, according to Mu Changchun, director-general of the institute for digital currencies, who made the announcement earlier this month. This is because more use cases for the new digital currency have been revealed as it has been tested.

The PBoC initiated pilot trials of the e-CNY in Shenzhen in October 2020 and it has since expanded the studies to at least 23 cities and provinces.

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