Chinese Central Bank Seeks to introduce QR code mechanisms for CBDC

The People Bank of China wants standardization of Chinese CBDCs via integration with traditional payment systems.

China is a tech adoptive country, which adopted blockchain technology in the early stage over other countries via the introduction of the Chinese Central Bank Digital Currency (CBDCs), or say Digital Yuan. In 2021, China banned the whole crypto industry from the country and introduced Digital Yuan. Few experts claimed that the country banned crypto to reduce the competition for Chinese CBDC.

Last week, the deputy governor of the Central Bank of China, People’s Bank of China, Fan Yifei, said that there is a need to create a standardized ecosystem for Digital Yuan (or say e-CNY). 

Fan emphasized the need to introduce better features to promote & push the adoption of the National Digital Currency Digital Yuan. For the same, the Deputy governor suggested introducing QR code mechanisms, Bluetooth, and near-field communications to allow consumers to scan a QR code for various kinds of payment access.

According to reports, the statement from the PBoC deputy governor comes because the majority of the Chinese population is showing a significant inclination toward the use of QR code mechanism-based payment systems, which are powered by Ant Group’s Alipay and Tencent’s WeChat Pay.

In August, The director-general of the PBoC, Mu Changchun, suggested the developers to develop multiple smart contracts for e-CNY because it has been confirmed during the testing of digital Yuan that it has a better ability to perform better use cases in different types of things. 

At present, a survey confirmed, that around 9 out of 10 central Banks are either studying or developing CBDC, to bring modernization to the traditional financial system. This increasing interest of Central Banks in CBDC is creating peer pressure on the US Federal Reserve to work on the digital form of the Dollar. 

Read also: Norwegian central bank introduces its CBDC prototype on Ethereum network