According to a media report last September 21, the e-commerce giant JD.com has joined hands with the People’s Bank of China Digital Currency Research Institute to build mobile apps for China’s digital yuan.
DCEP Is the Digital Version of the Yuan
The two bodies will work together to build mobile and blockchain technology platforms and digital wallets for the digital yuan initiative. This includes online as well as offline functionality. In other words, the body is said to support online and offline payments, and the growth, development, and expansion of a “digital wallet.”
The report further stated that China’s central bank digital currency is a legal tender distributed by the central bank and has an equivalent impact as banknotes and coins. Right now, the digital economy has become a more powerful driving push for global financial maturity, and the statutory digital currency method will also become an essential support to improve the “dual cycle”.
The evolution and application of constitutional digital currency will aid in effectively providing the requirements of people and companies under the provisions of digital economics. This will also help the accelerated development of the digital economy. In recent years, the Digital Currency Research Institute of the People’s Bank of China has advanced to study and improve in the area of judicial digital currency and delivered many new settlements.
The DCEP (Digital Currency, Electronic Payment) is now being tried and analyzed at nationalized banks, as well as many businesses supported by Tencent as well as other companies. The digital currency is anticipated to serve as cash in China, being utilized for local payments via mobile apps.
The report further elaborated that the People’s Bank of China started a study on legal cryptocurrencies in the year 2014. In January 2017, the People’s Bank of China Digital Currency Research Institute was founded. and 22, 65, and 43 patent applications have been submitted for digital currency and related content respectively. This covers the whole method of issuance, circulation, and application.
JD.com is a NASDAQ-100 and Fortune Global 500 firm with a profit of nearly $83 billion in 2019. It is one of the foremost online retailer competitors for Alibaba in China.
As per its official website, JD.com develops secure and scalable platforms that work in various areas such as e-commerce, logistics, Internet banking, cloud computing, and smart technology.