SHANGHAI/BEIJING, March 20 (Reuters) – China’s Bank of Ningbo said it is inviting suppliers to help build a system to handle the digital yuan, in a sign that the country’s central bank may soon hand out more licenses as it tries to broaden the use of its e-CNY.
The People’s Bank of China (PBOC) may allow another 12 Chinese banks to conduct e-CNY businesses, local media outlet Caixin reported late on Thursday. Currently, China has licensed 10 banks for digital yuan business, including top state banks such as Bank of China and China Construction Bank.
Beijing is stepping up its e-CNY initiative to cement its lead over other central banks in digital currency development, and to fend off threats from cryptocurrencies, which have facilitated capital flight and evasion of currency controls.
In December, the PBOC reaffirmed a ban on virtual currencies, and set up an operation centre in Shanghai to promote global use of the digital yuan.
From January 1, the PBOC made e-CNY interest-bearing to increase its appeal.
Bank of Ningbo said in a procurement statement dated March 17 that it is soliciting suppliers for its digital yuan system project. Preferred applicants would be familiar with digital yuan wallets, it said.
The PBOC launched the digital yuan in 2019 but its use has so far been limited among the public, who heavily rely on China’s ubiquitous platforms Alipay and WeChat Pay for digital retail payments.
(Reporting by the Shanghai and Beijing newsroom; Editing by Kevin Buckland)
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