China central bank works with Alibaba Ant on digital yuan

According to a VOA News report, the Alibaba group's subsidiary Ant Group has signed a partnership with the People's Bank of China. The partners will work to build a platform for the country's central bank digital currency (CBDC). The VOA quotes the Chinese state media Global Times. The development of Digital Yuan, also known as Digital Renminbi or e-CNY, will be "jointly introduced" by the partners and will be based on the Alibaba subsidiary. The Global Times revealed that banking institutions have been partnering with Ant and Chinese multinational conglomerate Tencent for more than three years. Together they developed Digital Yuan. Ant and Tencent have been the subject of numerous investigations by the Chinese government. However, this did not prevent them from working on the project. The VOA says the People's Bank of China needs help building the CBDC's infrastructure and distribution channels. China expects e-CNY to be used in local retail payments and then adopted by foreign countries. Geo Securities CEO Francis Lun told VOA that Alibaba's subsidiary has been instructed by Chinese officials to submit their databases. Ant is one of the largest payment providers in China and controls more than 54% of the country's electronic payments market, according to data shared in the report. The company offered to help, but the government refused, fearing a possible "conflict of interest". Lun said: Chinese officials are asking Ant to transmit your big data to the central bank. The data will not remain in private hands because the Communist Party is in charge. The digital yuan will not resemble Bitcoin, officials from the People's Bank of China said their CBDCs will have unique properties. According to the VOA report, the Digital Yuan will become a government surveillance tool. He compared China's e-CNY with George Orwell's classic "1984", which is the opposite of Bitcoin. The digital currency allows China to track all transactions and will be part of an effort to do so.

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