Latest PBoC News

  • Former PBoC official: digital currency can substitute all currencies
    Former PBoC official: digital currency can substitute all currencies
    Digital currency like DCEP can be a substitute for cash in circulation and more says former banking chief
  • China’s Digital Yuan to Reportedly Target Dominance of Alibaba and Tencent
    China’s Digital Yuan to Reportedly Target Dominance of Alibaba and Tencent
    China’s central bank may be planning to use its digital currency to curb the dominance of Alibaba and Tencent in the digital payments sector. The People’s Bank of China is purportedly planning to use its digital currency electronic system (DCEP) — another moniker for its central bank digital currency — to target the dominance of technology giants like Alibaba and Tencent in the digital payments sector. The report comes only a few days after claims of the central bank prompting a top antitrust agency to launch a probe against Alipay and WeChat Pay for using their dominance to suppress competition. According to the Financial Times, even regulators and executives of Alibaba’s financial group Ant agreed that PBoC will target the market dominance of Alipay and WeChat pay. As of now, Alibaba’s financial subsidiary Alipay and Tencent’s WeChat Pay control a majority of the digital payments across China while banks are left far behind in the competition.
  • China's Antitrust Agency Urged By the PBOC to Probe Alipay and WeChat Pay
    China's Antitrust Agency Urged By the PBOC to Probe Alipay and WeChat Pay
    In a move similar to the US antitrust hearing, the People’s Bank of China has prompted the nations top antitrust body to probe Alipay and WeChat (Read More)
  • Tech's Antitrust Issues Flare Up on Both Sides of the New ‘Cold War,’ Report
    Tech's Antitrust Issues Flare Up on Both Sides of the New ‘Cold War,’ Report
    At the request of the People’s Bank of China, Beijing could soon probe its digital payments monopolies, sources claim. Days after the CEOs of the world’s top tech firms faced antitrust hearings in the United States Congress, sources are alleging that Beijing too could soon probe its own digital monopolies.  A Reuters report published on July 31 cites anonymous sources who claim the People’s Bank of China has formally recommended that the State Council’s antitrust committee launch a probe into the activities of digital payments titans Alipay and WeChat Pay. The central bank has allegedly argued that both have used their ascendant position to stifle any possible competition in the field of digital payments.  If approved, an antitrust probe could be imminent China’s mobile banking sector processed roughly 56.2 trillion yuan ($8 trillion) in transactions in the last three months of 2019, according to Analysys statistics cited by Reuters.  Analysys estimates that AliPay, run by Alibaba affiliate Ant Group, and Tencent’s fintech business (largely WeChat Pay) occupy 55% and 39% of the country’s mobile banking market respectively. One of Reuters’ unnamed sources has said the PBoC formally recommended the State Council committee to investigate possible antitrust issues within the second quarter of 2020. Probe could throw cold water on Ant’s IPO plans The report notes that PBoC has already taken measures to erode the market dominance of both by announcing plans to standardize the interoperability of QR code payments in a bid to ease the entrance of smaller actors into the market. Should a formal antitrust investigation be launched, the news could be a blow for Ant Group’s highly-anticipated dual listing in Shanghai and Hong Kong, where it seeks an initial public offering at a valuation of a reported $200 billion. Following the central bank’s recommendation, the State Council antitrust has already been collecting information on bot
  • China to Test Digital Yuan on Food Delivery Platform With 435 Million Users
    China to Test Digital Yuan on Food Delivery Platform With 435 Million Users
    China’s central bank may test digital yuan on Meituan Dianping’s food delivery platform with 435 million users. The People’s Bank of China (PBoC) is planning to add the Tencent-backed food delivery giant Meituan Dianping to its list of platforms that will test real-world use cases of the digital yuan. Meituan Dianping is a Beijing-based food delivery platform that currently boasts of more than 435 million active users and billions of dollars of daily transactions.