Chinese banks promote digital yuan over other payments methods

Leading banks in China are beginning to support and promote the use of digital yuan over local traditonal payment firms like Alipay and Wechat as a payment method during the upcoming shopping festival, per a Reuters report.

According to the report, several state banks, are seriously canvassing for the use of the digital yaun, as the best payment alternative, instead of Alipay and WeChat Pay. Among them are the Industrial and Commercial Bank of China, Agricultural Bank of China, HSBC, and China Construction Bank.

An official to one of the banks who is actively involved in the CBDC trial's rollout expressed confidence and described the digital currency as better than the two payment methods mentioned above.

In his words, "people will realize that digit yuan payment is so convenient that I don't have to rely on Alipay or WeChat Pay anymore."

Chinese authorities have denied allegations that it might be trying to break the dominance of the two payment networks in the country. Another bank official went on to add that "WeChat Pay and Alipay own an ocean of data," so the rollout of the digital yuan would help the government control big data which is currently under the control of the two tech companies.

The state has recently stepped up efforts to curtail the dominance of these giant tech companies. It recently fined Alibaba a whopping $2.8 billion over accusations of illicit activities in the market.