China’s central bank is pushing for the effect of an experimental national digital currency, bringing two large private banks to the project.
According to a Bloomberg report released on February 22, MYbank and WeBank will help the People’s Bank of China expand users’ access to the current beta versions of the central bank’s digital currency, the digital yuan.
As part of the merger, MYbank will soon receive a digital yuan app from PBoC, people familiar with the matter told Bloomberg.
The e-wallets MYbank and WeBank are reported to have exactly the same functionality as the six government lenders involved in the process. As previously reported, the People’s Bank of China (PBOC) is collaborating with state-owned banks such as the Bank of China, the Construction Bank of China, the Industrial and Commercial Bank of China and the Agricultural Bank of China.
A spokesman for MYbank told Bloomberg that the bank “will go ahead with lawsuits in line with the general PBoC agreement.” MYbank and WeBank did not immediately respond to Cointelegraph’s request for comment.
As Cointelegraph previously reported, WeBank is the largest digital bank in China, serving over 200 million customers as of May 2020. In recent years, the bank has actively experimented with blockchain technology, and has become one of the largest suppliers of patents in the world in 2019. Chinese internet giant Tencent is considered the largest shareholder in WeBank, which owns 30% of the shares.
MYbank, founded by Alibaba and its subsidiary Ant Financial in 2015, is a large private, commercial online bank that specializes in lending to small and medium-sized businesses. Alibaba founder Jack Ma is MYbank’s largest shareholder and is said to own 30% of the shares.
China Postal Savings Bank, the state-owned commercial bank in China, last week released a biometric hardware wallet to make it easier to access the CBDC.