Analysis: China's proposed digital currency will help banks narrow the gap in mobile payments and curb the dominant position of Alipay and WeChat

August 19 news, analysts said that the Chinese central bank "will soon" launch its own sovereign digital currency, will help banks to narrow the gap in mobile payments, may curb Ant Financial's Alipay and Tencent Holdings' WeChat payment two third-party payment operations The dominant position of the business. The two operators together account for 90% of China Mobile's payment transactions, as retail depositors may shift some of their payment transactions to digital cash issued by the People's Bank of China. Cindy Wang, an analyst at DBS Research Group, said that by allowing banks to act as a conversion agent from legal tender to digital currency, the People's Bank of China wants to ensure that when digital currency is converted back to RMB, funds can be returned to the bank's deposit account. Remarks: Earlier news, the Deputy Director of the People's Bank of China Payment and Settlement Division, Mu Changchun, said that the central bank's digital currency is about to be launched, will adopt a two-tier operating system, that is, the upper layer is the People's Bank of China, and the second layer is the commercial organization.