{"id":6726,"date":"2023-09-05T01:18:22","date_gmt":"2023-09-05T01:18:22","guid":{"rendered":"https:\/\/prosfunds.com\/markets\/crypto\/bank-of-china-and-meituan-strike-digital-yuan-deal\/"},"modified":"2023-09-05T01:18:23","modified_gmt":"2023-09-05T01:18:23","slug":"bank-of-china-and-meituan-strike-digital-yuan-deal","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=6726","title":{"rendered":"Bank of China and Meituan Strike Digital Yuan Deal"},"content":{"rendered":"
\n

The Bank of China and the e-commerce heavy-hitter Meituan have signed a digital yuan collaboration deal, with both firms looking to step up their CBDC capabilities.<\/p>\n

Per the Securities Times, via Stockstar, the two firms have sealed a \u201ccooperation agreement\u201d that will see them \u201cdeepen\u201d their \u201cdigital yuan cooperation.\u201d<\/p>\n

The new deal will build on the firms\u2019 existing CBDC partnership deal, signed back in 2021.<\/p>\n

The companies\u2019 new agreement will see them co-develop solutions that go beyond retail commerce, the initial focus of the pilot.<\/p>\n

The two companies will instead also branch out into CBDC-powered corporate services.<\/p>\n

They will also explore cross-border usage cases for the digital yuan.<\/p>\n

They will also look beyond smartphone-based digital yuan usage \u201cscenarios\u201d and expand their adoption of \u201chardware wallets.\u201d<\/p>\n

\u201cHardware wallets\u201d or \u201chard wallets\u201d refer to smartcards, SIM cards, or wearable devices that do not require an internet connection to make payments.<\/p>\n

Both China and Russia have insisted that their CBDCs will be available offline and to non-smartphone users to boost inclusivity.<\/p>\n

In some parts of both nations, network connectivity remains an issue.<\/p>\n

<\/oembed><\/figure>\n

Bank of China, Meituan to \u2018Deepen\u2019 Digital Yuan Partnership<\/h2>\n

The two firms signed their new agreement at a recent service trade fair.<\/p>\n

And they underlined their commitment to using the e-CNY to \u201cimprove the availability and convenience of financial services.\u201d<\/p>\n

Early last year, Meituan announced that its Meituan Waimai food delivery network, one of the largest in the country, had added digital yuan payment options.<\/p>\n

The company has also been trying to spur adoption by giving away digital yuan vouchers that can be redeemed on its sites, with would-be recipients obliged to open digital yuan wallets.<\/p>\n

The Bank of China, meanwhile, has been working with another e-commerce heavyweight, JD.com, on a cross-border e-CNY pilot in Hong Kong.<\/p>\n

<\/oembed><\/figure>\n

Last week, the Chinese town of Likou, in Siyang County, Jiangsu Province, agreed a deal with the Postal Savings Bank of China.<\/p>\n

The agreement will see Likou become a digital yuan \u201cdemonstration town.\u201d<\/p>\n<\/p><\/div>\n