Chinese media reports that Alibaba's affiliate, Ant Financial, is conducting small-scale tests of China's CBDC via its mobile payment app, AliPay. Ant Financial was days away from a $310B IPO before Xi Jinping reportedly disappeared its founder, Jack Ma.
Terminology: Chinese fiat has three interchangeable names: renminbi (RMB), Chinese yen (CNY), and yuan (¥). The People's Bank of China (PBoC) issues China's central bank digital currency (CBDC) called "digital yuan'' or its preferred name, Digital Currency/Electronic Payment (abbreviated DC/EP or DCEP).
- According to some Chinese media outlets, Ant Group recently completed a digital yuan test within Shanghai's Lujiazui financial district via its AliPay mobile app.
- The news reports suggest that AliPay users utilized DCEP in two bubble tea stores within a shopping center in Lujiazui.
- Alibaba's (NYSE:BABA) Ant Group says that it will follow the rules established by the People's Bank of China during its digital yuan tests.
- In addition to tea stores, Shanghai Tongren Hospital staff report testing DCEP since Jan. 5. They used a smart card to buy beverages and food from the cafeteria in an offline environment.
- Ant Group's founder Jack Ma is currently missing amid scrutiny by the Chinese government.