People’s Bank Of China And Ant Group Of Alibaba To Work Together In A Bid To Develop A Platform For Digital Yuan

Based on the report released on the VOA news, the Ant Group affiliate of Alibaba Group has entered a collaboration agreement with the central bank of China. The partnership aims to work to build a great platform for the central bank digital currency of the country. The news agency quotes the state media of China, Global Times.

The development of the digital Renminbi, which can also be called Digital Yuan or e-CNY, will now be promoted jointly by the partners, and this will be based on the affiliate group of Alibaba. Global Times, the Chinese state media, revealed that different banking institutions have partnered with Ant, including Tencent, a multinational conglomerate based in China over the space of three years.

Tencent and Ant have been through several scrutinies by the Chinese government. Though, this would not prevent them from continuing work on the project. The news agency claimed that the central bank of China (Which is also called the People’s Bank of China) needs assistance in developing the infrastructure of the Central Bank Digital Currency and the channels of distribution. China, however, expects the digital currency to be used for payments in local retails and in no distant time accepted by other foreign countries.

The CEO of Geo Securities, Frank Lun, spoke with the News Agency, VOA News, that the affiliate of Alibaba was ordered by the regulatory bodies in China to submit their comprehensive database. Ant group has risen to be one of the notable payment gateways in China, and it is controlling more than 54% of the electronic payment market in China based on the report shared.

Lun said: “Ant is already told by the government of China to submit their big data to the People’s Bank of China. The data, however, will not remain with private figures since the boss is the communist party.”

The Digital Currency Will Not be like BTC

Notable figures in the central bank of China said that the digital Yuan would be known for its remarkable features. Based on the report from VOA, the digital currency will be used for government surveillance. He, however, compared the digital currency with the George Orwell 1984 classic and called it the opposite of BTC.

“The CBDC,” he said, “will help the government of China to monitor all transactions and will be part of their major plan to achieve the ‘de-dollarization of the global financial system. “