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Crypto News

Bank of China Extends Testing of the Digital Yuan to SIM Cards and NFC Transactions

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

digital yuan

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In order to test SIM cards and near-field communication (NFC) payments tied to the renminbi, China Unicom and China Telecom have partnered with the state-owned financial institution Bank of China. According to the Bank of China, the pilot will only support Android phones at this time and will be evaluated with a limited number of users and locations.

Infrastructure for the “e-CNY,” also known as the digital yuan or renminbi, is still expanding. This digital currency is issued by the central bank of China. The CBDC of China is testing SIM cards and NFC payments, according to a statement released by the Bank of China on July 10. Select users are currently receiving the testing, and “selected pilot areas in the near future” will gradually receive promotion of it.

The Bank of China says it’s working with China Unicom and China Telecom to “unlock new capabilities” with the digital yuan. The state-owned financial institution calls the SIM card hardware wallet “hardware.” The Bank of China states in a press release that digital renminbi users merely need to insert the telecoms operator’s SIM card on their phones, log in to the app, and activate the SIM card hardware wallet.

Bank added:

The digital renminbi SIM card hardware wallet facilitates offline payments and shares the balance with the main wallet, removing the need for top-ups and making payments more convenient and user-friendly.

The Bank of China pledged to promote SIM card hardware wallets and digital yuan apps. The bank will explore e-CNY uses in rail transit, everyday consumption, academic settings, online shopping, utility payments, commercial retail, and educational training. The bank wants to enable SIM cards to reach a huge number of IoT devices.

At the end of June, the Shanghai Clearing House supported the digital yuan before Jinan, China, introduced it for public transit fares. 11 nations have introduced Central Bank Digital Currencies (CBDCs), while 130 countries, representing 98% of global GDP, are contemplating CBDCs. The CBDC pilot test in China covers 260 million people and various economic scenarios.