Chinese Telecoms Firms Growing Increasingly Keen on Digital Yuan

China Digital Yuan
Last updated:
Author
Author
Tim Alper
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
A China Telecom sign is lit up at the China National Convention Center, in Beijing, China.
Source: Eagle/Adobe

Chinese telecom operators are growing increasingly keen on digital yuan adoption, a report has claimed, as the CBDC finds new adoption strongholds.

Per EY (via Sohu), the central People’s Bank of China (PBoC) is keen to bring the nation’s biggest operators (the likes of China Telecom and China Unicom) deeper into the pilot.

The PBoC reportedly believes telecoms firms can help boost adoption.

Earlier this month, the central bank unveiled an offline SIM card-based digital yuan “hard” wallet solution.

The solution lets users pay with the CBDC, even if they have powered-down phones or have no network coverage.

While the solution is currently only available for Android smartphone users, there is a possibility that telecoms firms and banks will look to expand options for 2G mobile users.

2G phone ownership is highest in China’s rural communities, particularly among the elderly.

And these communities tend to be the least tech-savvy of all in China.

This is another reason why SIM-based digital yuan solutions could soon take off in the nation.

EY claimed that the SIM-based solution’s “threshold for use” is “extremely low.

The firm wrote:

“This would help solve the problem of [smartphones] for certain groups such as the elderly and children.”

Why Are Chinese Telecoms Firms Warming to the CBDC?

The central bank has repeatedly claimed that the token will help “make up for the ‘digital divide” and boost “financial inclusion.”

Furthermore, EY claimed, SIM-based wallets have superior security key management functions.

They also support encryption algorithms that boast “a higher security level than software-based solutions.”

Major telecoms firms have already expressed their willingness to work with the PBoC on the SIM wallet solution.

They reportedly already “regard it as a key product for [their] long-term development.”

EY added that the telecoms firms also hope to integrate the digital yuan into their 5G and Internet of Things (IoT) offerings.

They are also exploring ways to integrate the token into their own payment networks.

This means wallets could be linked to smart utility meters and public energy grids, as well as shared bicycles and smart electronics-charging stations.

Earlier this week, the city of Shenzhen claimed that over 36 million digital yuan wallets have been opened in city limits to date.
 

More Articles

Price Analysis
ADA Price Stagnates as ETF Speculation Grows – Is This the Calm Before the Storm?
Simon Chandler
Simon Chandler
2025-02-17 14:53:08
Blockchain News
Worldcoin Launches in the Philippines with World ID Amid Privacy Debate
Hassan Shittu
Hassan Shittu
2025-02-17 11:48:23
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors