Chinese e-commerce giant JD.com recently joined forces with China’s central bank to develop mobile apps and digital wallets. It is all in a hassle to support the country’s central bank digital currency (CBDC). According to local news reports, the two parties signed a strategic partnership to advance digital payments in China. The eCommerce retailer will build online and offline functionalities to support remittances in the digital Yuan, including a digital wallet.
Currently, China’s CDBC is undergoing tests at nationalized banks; that is, employees are internally piloting the digital wallet app for fund transfers and payment transactions.
JD.com has increasingly leveraged the blockchain in its operations in the recent past. In May 2020, the company integrated smart contracts and applications to safeguard shoppers’ confidential info on its independently-developed blockchain, JD Chain.
Furthermore, the firm has extensive experience with blockchain technology. It is likely why it has been chosen to build mobile and blockchain technology platforms for China’s digital payment program.
China will further accelerate its push for digital payments by partnering with other top retail firms, such as Didi Chuxing and Bilibili.
These partnerships show that the digital economy has emerged as a powerful driving force for the global financial system.
Americans Rush to get WeChat
More individuals globally are seeking innovative ways to transact via contact-less means in the wake of Covid-19. Since the onset of the outbreak, retailers and shoppers have switched to digital payments; they provide a hygienic alternative to cash transactions.
American citizens haven’t been left behind, as reports indicate that many are rushing to get the Chinese digital payments mobile app WeChat.
WeChat, which doubles as a communication and social media platform, faces a ban in the US after the country’s Commerce Department moved to prohibit new downloads of the app.
The ban could strike a devastating blow to the estimated 3.3 million monthly users who actively use the app for communication and remittances to China.
Many more developments have occurred in the digital payments space in the past few weeks. For instance, the UK-based FinTech firm Revolut launched its banking app in Japan to foster digital payments on Sep.8.
The digital platform allows users to exchange their cash into over 30 different currencies and transact with minimal foreign exchange fees. In some jurisdictions such as the EU, users can procure digital assets such as Bitcoin on their Revolut app.
Could Crypto Benefit from the Exploding Digital Payment Market?
As per an August report by MarketWatch, more retailers are investing heavily to facilitate digital payments in regular transactions.
Giant eCommerce firms such as Amazon are increasingly offering customers convenient shopping ways by introducing e-wallets to load digital funds for future purchases.
As the digital payments craze continues post-Covid-19, the nascent crypto industry could benefit massively. Regions such as Eastern Europe are already registering a steady shift from traditional financial transactions to crypto.