China: State-Owned Bank Deactivates Its Digital Yuan Wallet After Widespread Attention

The Chinese Construction Bank (CCB) — one of the largest state-owned banks in China, unexpectedly disabled public access of the digital yuan wallet a few hours after a successful soft launch because the feature reportedly drew too much attention according to CoinDesk on Aug 29.  

Chinese Construction Bank (CCB) deactivates the Digital Yuan Wallet Feature

It was observed that around noon on Aug 29, users took notice of the CCB’s digital yuan wallet feature availability inside the bank’s mobile app. The feature temporarily enabled CCB account holders to register and activate the digital yuan wallet using a phone number associated with the account. 

Some got lucky and transacted. However, the party was cut short after news percolated into mainstream media, forcing the bank to swiftly disable the feature. Subsequently, related searches returned a message urging users to “wait patiently” until the function is officially made available.

Nonetheless, what could be gleaned is that registrants were assigned a specific wallet ID as a pass to move funds the wallet and their bank account. Besides, there are four types of wallets with different transaction limits.

Digital Yuan Pilots

The digital yuan is an initiative of the PBoC—the country’s central bank. Each coin is legal tender, fully convertible to hard notes. Designed to complement hard cash, the central bank continues to trial the CBDC with several stakeholders. 

The initial state runs confirmed that the bank was eager to test how the coin performs under retail settings where small payments are frequently made waylaying rumors that the digital yuan can, at the moment, used to make big retail.

Despite PBoC’s efforts, critics argue that the eventual deployment of the digital yuan will be China’s attempt to upend the world financial order. 

The digital yuan is under test in several regions in China. Earlier reported by BTCManager, China’s Commerce Ministry sought to “to comprehensively deepen pilot tasks, highlight specific measures, and specify the division of responsibilities for the innovative development of service trade” a few months after concluding their closed trials with some of the largest state-backed banks in china.

The digital yuan should be up and running by 2022. Then, Beijing will be holding the Winter Olympics.

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