Chinese consumers can link bank accounts to the CBDC app for contactless payments
As reported by local media Yicai Global, Chinese consumers in regions piloting the country’s central bank digital currency (CBDC) can now automatically transfer funds to their digital yuan wallet app.
The CBDC project has been running since January. However, the app was released only in June. One-fifth of Chinese consumers have already downloaded the app. The new feature which means they don’t need to manually top up the balance anymore would probably enhance the app’s popularity.
If users link their bank cards to the digital yuan app, the service can automatically draw amounts from a linked account when the wallet’s balance is too low.
Dozens of countries across the globe are hesitant about the need for CBDCs. Hence, global attention is locked on the e-yuan project.
The localised trial of the digital yuan started in 2021. However, China isn’t rushing to implement the project full-scale. E-CNY faces many challenges both internally and abroad. For instance, the project is still technically inferior to digital payment services offered by national private companies (AliPay, WeChat Pay). However, improvements like the automated top-up may raise the compatibility of the Chinese CBDC project.