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Ant Group to Let More Users Participate in Digital Yuan Testing

UTC by Ibukun Ogundare · 3 min read
Ant Group to Let More Users Participate in Digital Yuan Testing
Photo: Shutterstock

In a statement, Ant Group said it would be involved in further trials and research surrounding the digital yuan.

Alibaba’s Ant Group is allowing more users to test China’s digital yuan amid the development and trials of the country’s digital currency. As an affiliate of Alibaba (NYSE: BABA), Ant Group will now become one of the major private businesses to test the digital yuan. On the 10th of May, China Securities China Journal revealed that MYbank is allowing some customers to link their bank accounts with the digital yuan app.

Ant Group Allows More Users on Digital Yuan Testing

In addition, another report by China Securities Journal revealed that Ant’s Alipay has also added a digital renminbi module. The report said the new feature would be available to selected users. Also, users can choose to use the Alipay digital renminbi wallet with their real names or as anonymous. In a statement, Ant Group said it would be involved in further trials and research surrounding the digital yuan. Referring to the process as e-CNY, the company said:

“As one of the participants in the trial of the e-CNY, Ant Group’s associate MYbank will steadily advance the trial pursuant to the overall arrangement of the People’s Bank of China. Ant Group, together with MYbank, will also continue to support the research, development and trial of PBOC’s e-CNY.”

As of the end of 2020, MYbank said it manages more than 35 million small businesses and individual clients. The figure shows that the company had expanded 68% year-on-year.

Alibaba stock is currently at a premarket trading price of $221.89, a 1.52% loss over its previous close of $225.31. Except for a nearly 10% increase seen over the last twelve months, the company has been recording losses. Since 2021 began, BABA has declined more than 3% and dropped 14.20% in the last three months. Also, the e-commerce company’s stock has lost 7.66% over the last month and shed more than 2% in the last five days.

PBoC Conducts Trials for Digital Yuan

China is one of the counties leading the creation of their central bank digital currencies (CBDCs). The country’s central bank, the People’s Bank of China (PBoC), has already conducted several trials of the digital yuan. Over the last year, PBoC has distributed millions of digital yuan in the testing phase. The central bank executed the distribution through an app that connects with the six major, state-owned banks.

Under the testing process, holders of the digital yuan have been able to pay for goods with the digital yuan to merchants like e-commerce giant JD.com. In a blog post on the 25th of April, JD.com announced its collaboration with the PBoC over the trial of the digital yuan. JD.Com said that it paid some of its employees with the country’s digital currency in January. Additionally, the company said it used the digital yuan to conduct payments to other businesses using the digital currency.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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