Two Banks back China’s Digital Yuan

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The central bank of China has brought global recognition to its national cryptocurrency scheme by engaging with two large private banks for the project.

MYbank and WeBank have confirmed in a recent statement to Bloomberg, that they are empowering the People’s Bank of China to develop its customer appeal and adoption of the national digital asset, Digital Yuan Bank.

Sources in the industry stated to Bloomberg, the integration of MYbank services would soon be expected to commence on PBoC’s digital app.

It has been exclaimed the e-wallets of MYbank and WeBank are almost identical in roles to those of the confirmed six state-owned investors. PBoC has previously cooperated with many state-owned banks including the Bank of China, the China Construction Bank, Agricultural Bank of China and China Industrial in the project.

Representatives from MYbank clarified their position to Bloomberg stating they would “steadily advance the trial pursuant to the overall arrangement of PBoC”.

Cointelegraph recently declared WeBank as China’s head digital bank with a customer base of more than 200 million customers as of May 2020. With an energetic strategy to develop blockchain technologies, WeBank have often innovated the industry as displayed by the first blockchain patent filed in the world in 2019. Chinese based internet company Tencent, most associated with video game acquisitons, is the largest shareholder in WeBank with a 30% stake.

MYbank, a private online commercial bank with a primary focus on lending options for upcoming entrepeneurs, was created as a joint venture between Alibaba and Ant Financial. Alibaba creator, Jack Ma, is currently the largest shareholder of MyBank with a 30% stake.

In recent developments China’s commercial state bank, the Postal Savings Bank of China, announced their launch of biometric hardware wallets with the aim of connectivity to the Central Bank Digital Currency (CBDC).