Will PBOC partner with seven institutions like Tencent, Alibaba, and other Chinese banks to roll Digital Yuan?December 9, 2019
Business organizations use the cryptocurrency payment Apps market to accept transactions like cryptocurrencies as payment from their clients in exchange for goods or services. These apps can be used to get payment from any country. It seems like apps are everywhere and there is a new app coming every week.
These solutions are good because they have advanced security mechanisms in place. When payment is made through the Cryptocurrency payment apps, it happens at a fixed exchange rate. These apps immediately convert the transaction into a currency that has traditionally acknowledged fiat currency, and therefore merchants can survive the volatility in the cryptocurrency markets. There are some cryptocurrency apps, which will not convert the digital tokens to fiat currencies automatically.
Over the past five years, The People’s Bank of China (PBOC) has been developing the state-backed cryptocurrency. While decentralized blockchain-based cryptocurrencies provide for anonymous transfers, the cryptocurrency from China is designed to improve the control of the government over its financial system.
It is expected that the PBOC will launch its cryptocurrency on a mobile wallet app facilitating users to be able to use their Yuan for digital currency to make payments in the digital currency payments on the platform. The Central Banks will track the origins and destination of every transaction.
Several industry watchers believe that the introduction of the Libra by Facebook is a significant trigger for China coming up with its cryptocurrency. However, China will not be cutting off the banks from the loop, thereby simplifying the cross-border transfers. The digital Yuan aims to improve the transparency of financial transactions.
Several conversations about the digital currency are based on comparing the Libra and digital Yuan. There are comparatively fewer discussions about how the coming of the digital currency will affect China’s top digital payments platform like Tencent – OTC: TCHEY. Of note, Tencent is providing TenPay as a payment service for QQ in 2005. Ant Financial’s AliPay from Alibaba is Tencent’s rival.
It is expected that PBOC might partner up with WeChat Pay and AliPay. A recent report from Forbes states that PBOC will partner with seven institutions like Tencent, Alibaba, and “several Chinese banks — to roll out the digital yuan.”
Eventually, every token ranging from TCAT token through several other Altcoins are going to come into the mainstream adoption, with each of them offering a range of wallets. Despite the significant opposition and apprehensions, the crypto space continues to grow.