The Bank of China and e-commerce giant Meituan have recently signed a collaboration deal focused on advancing their abilities in the digital yuan space. This partnership aims to further strengthen the capabilities of China’s central bank digital currency (CBDC). The agreement between the two firms builds upon their existing CBDC partnership deal, which was initially signed in 2021.
The Securities Times, with reference to Stockstar, reported that the newly formed collaboration agreement between the Bank of China and Meituan will deepen their digital yuan cooperation. While the initial focus of their pilot was retail commerce, this new deal will enable the companies to co-develop solutions that extend beyond this scope. Specifically, they will explore CBDC-powered corporate services and cross-border usage cases for the digital yuan.
Moreover, the collaboration will expand the adoption of hardware wallets for digital yuan usage. Hardware wallets, also known as hard wallets, are smartcards, SIM cards, or wearable devices that do not require an internet connection to make payments. This move is particularly significant as it aligns with China’s goal of ensuring offline availability and inclusivity of their CBDC. Offline accessibility is crucial in areas with limited network connectivity, which both China and Russia have acknowledged in their CBDC development.
The agreement between the Bank of China and Meituan was confirmed during a recent service trade fair. The two companies emphasized their commitment to leveraging the digital yuan, also known as e-CNY, to enhance the availability and convenience of financial services. Meituan has already taken steps in this direction by introducing digital yuan payment options to its Meituan Waimai food delivery network, one of China’s largest.
Related Post
As part of its adoption efforts, Meituan has also distributed digital yuan vouchers, which can be redeemed on its platforms. To receive these vouchers, users are required to open digital yuan wallets, thereby encouraging the adoption of the CBDC. The Bank of China, on the other hand, has been collaborating with JD.com, another major e-commerce player, on a cross-border e-CNY pilot in Hong Kong.
In addition to the collaboration between the Bank of China and Meituan, Likou, a town in Siyang County, Jiangsu Province, recently signed an agreement with the Postal Savings Bank of China. This agreement solidifies Likou’s role as a “demonstration town” for the digital yuan. This designation indicates Likou’s commitment to spearheading the adoption and utilization of the CBDC, showcasing its potential benefits and serving as a model for other regions.
Overall, the collaboration between the Bank of China and Meituan reflects the expanding efforts in advancing digital yuan capabilities. By co-developing solutions and exploring new use cases, the two companies are contributing to the wider adoption and acceptance of the CBDC. As China continues to prioritize the development of its digital currency, partnerships like these play a crucial role in driving innovation and progress in the digital yuan landscape.
