Good news! Overseas visitors will be granted access to China's digital currency without the need to open a local bank account. The measure will further provide convenience to foreign travelers to China.
Despite e-payments being a major form of transactions in China, the country’s two leading mobile pay applications, operated by Tencent and Alibaba until recently, required a Chinese bank account to make payments within the country, which makes it difficult for foreigners to use the apps.
Now here comes the good news! According to the report Progress of Research and Development of e-CNY in China, China will further promote the usage of digital RMB and provide some conveniences for foreigners.
The central bank will work with monetary authorities in other countries to set up exchange arrangements and regulatory cooperation mechanisms on digital fiat currencies, the PBOC report disclosed.
Foreigners with no bank account in China can enjoy basic financial services provided via e-CNY wallet. Foreign residents temporarily traveling in China can open an e-CNY wallet to meet daily payment needs without having to open a bank account in China.
An e-CNY system will make financial services more accessible, providing fiat money for a large population in various scenarios. Those without bank accounts can enjoy basic financial services provided via e-CNY wallet, and foreign residents temporarily travelling in China can open an e-CNY wallet to meet daily payment needs without opening a domestic bank account. In addition, as e-CNY is settled upon payment, businesses and related parties can improve cash flow while enjoying more convenient payment services.
The publication of the report does not mean the PBOC will launch the digital RMB any time soon. There are still many steps to overcome before the digital currency can be formally rolled out.
The central bank will continually improve the e-CNY ecosystem, and continue to explore new application models as well as optimize the design of the e-CNY system, the PBOC report stated.
△ A digital Chinese yuan e-CNY payment card
The digital yuan has so far been tested across a vast range of scenarios, including paying utilities bills, catering services, transport and retail. You can check our previous articles to know more ↓↓↓
You can also click the "read more" to get the full content of the report.
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SOURCE | PBOC / China Daily / CNBC
