China is wrong to think its digital currency will increase global payments in RMB. But Beijing has its eye on a different prize, anyway.
Some 5,000 people in Shenzhen saw their phones light up in October with news they had won a digital «red envelope» worth 200 renminbi . But such statements defy logic as they imply that the reason for the relative unpopularity of the RMB is due to its not yet having been digitalized. Chinese shoppers and merchants represent almost half the world’s digital wallet users. Alibaba and Tencent control 94 percent of this market and cleared $50 trillion in transactions in 2019.
This article was written by Maximilian Kärnfelt and Kai von Carnap
To read the full article, please click on the following link: https://thediplomat.com/2020/12/chinas-new-surveillance-currency/
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