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In an exciting move at the intersection of finance and e-commerce, the Bank of China and e-commerce giant Meituan have inked a deal to deepen their collaboration in the realm of digital yuan. This strategic partnership aims to bolster its Central Bank Digital Currency (CBDC) capabilities, taking its existing commitment to the next level.
According to reports from the Securities Times, via Stockstar, the two industry titans have solidified a "cooperation agreement" that promises to enhance their "digital yuan cooperation." Building on their initial CBDC partnership established in 2021, this new pact signifies a significant expansion of their joint efforts.
The primary focus of this expanded collaboration extends beyond the realms of retail commerce, which was the initial pilot's emphasis. Now, Bank of China and Meituan are poised to co-develop solutions for CBDC-powered corporate services, opening doors to a broader spectrum of financial applications.
Additionally, the two entities are set to explore cross-border use cases for the digital yuan, further propelling the internationalization of China's digital currency.
What sets this partnership apart is its commitment to expanding beyond traditional smartphone-based digital yuan scenarios. Both Bank of China and Meituan are venturing into "hardware wallets." These hardware wallets, also known as hard wallets, encompass smartcards, SIM cards, or wearable devices that facilitate offline payments, eliminating the need for an internet connection.
China and Russia have emphasized the inclusivity of their respective CBDCs, ensuring accessibility to offline and non-smartphone users—a crucial step given the varying network connectivity conditions in different regions.
The formalization of this renewed commitment took place at a recent service trade fair, where Bank of China and Meituan underscored their dedication to enhancing the availability and convenience of financial services through the digital yuan.
Meituan, a major player in the Chinese food delivery sector, had previously integrated digital yuan payment options into its Meituan Waimai platform, one of the country's largest food delivery networks. Moreover, Meituan has been proactive in promoting digital yuan adoption by offering vouchers redeemable on its platforms, contingent on users setting up digital yuan wallets.
On the other hand, the Bank of China has been engaged in a cross-border e-CNY pilot with another e-commerce heavyweight, JD.com, in Hong Kong.
This collaboration between two industry giants showcases the growing synergy between finance and technology, and it represents a significant milestone in the journey of Central Bank Digital Currencies toward widespread adoption.
