an Update on China's Digital Yuan

Automatic TRANSCRIPT

An update on china's digital yuan and its relationship with private fintech companies we've been following the testing and the rollout of the digital yuan and the significance is a couple different pieces. There's i significance in the context of china trying to create an alternative to the. Us led global financial system. But there's a second context as well which has to do with the relationships between private fintech companies in china and the chinese government itself indeed it seems increasingly clear that step one in creating that alternative system is consolidating power at home what we saw late last year when china stepped in and stopped the financial groups. Ipo and really reshape. The way that company was designed are all a part of that larger battle today. Bloomberg is running a story about how china is pulling in two of the biggest fintech companies to its digital you on trial. The article is titled china. Enlists aunt backed my bank expanding digital you on trial and here are the key lines. My bank service will soon be introduced to the people's bank of china's digital yuan app. People familiar said requesting not to be identified because the matter is private tencent backed. We bank will also participate. One of the people said the e wallets from the two firms will have exactly the same function as those from. The six state owned lenders in the trial said the person adding the two banks to the pilot will help china's central bank expand its influence and user coverage in its push to establish the first national digital currency from a major central bank. When the people's bank of china. I announced its plans. It was viewed as some as a government move to reclaim the two hundred ninety. Three trillion yuan about forty five trillion dollars payments industry from ant groups ali pay and tencent holdings we chat pay. So again i think there are two really important dimensions to keep watching here. The first is the geopolitical battle. Us versus china. But then there's also the question of public versus private money within china itself

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