Oct 29, 2020|
China’s National TV Reports on JDD’s Involvement in Digital Currency
by Ling Cao
China’s National TV reported that the People’s Bank of China’s (PBOC) is continuing its research and development of the digital RMB. The PBOC’s Digital Currency Research Institute and JD Digits have formed a partnership in this field to jointly promote the ecosystem.
Yunhan Lu, manager of the program at JDD will be responsible for applying the digital yuan in JD’s scenarios. “On one hand, we think the digital yuan can help solve some of the pain points for ourselves. On the other hand, it can improve customer experience. Additionally, we can provide financial institutions, business partners and enterprises with digital yuan solutions.”
Tao Yang, expert from the Chinese Academy of Social Sciences said, “The digital yuan is a new form of renminbi which replaces a small portion of cash with a digital form.” Yang said, “Due to the safety, convenience and storage cost challenges of cash, digital currency was launched in 1980s, but it hasn’t yet be promoted at scale because of pain points like social governance management.”
Unstable value and lack of credit support for virtual currency has raised difficulties for financial supervision. Because of these problems, stable currency replacement forms have been launched, such as libra, a crypto currency by Facebook, but these forms require more government authorization to operate.
Haifeng Wu, Researcher from Shenzhen Finance Institute said, “Our digital yuan is endorsed directly by The People’s Bank of China and it’s a brand new digital form of renminbi, so it has strong credit characteristics.”