TL;DR Breakdown
- The People’s Bank of China (PBoC) has introduced an innovative offline SIM card-based solution for its digital yuan, allowing users to make payments even when their phones are powered down.
- To take advantage of this new feature, citizens need to obtain a “super SIM card” from their carriers.
- Presently, this innovation is limited to Android phone users with NFC functionality since no information has been provided regarding iOS users or owners of 2G phones.
Description
The People’s Bank of China (PBoC) has introduced an innovative offline SIM card-based solution for its digital yuan, allowing users to make payments even when their phones are powered down. This new development aims to cater to users with 2G phones who previously couldn’t access digital currency. Earlier this year, a similar solution was launched … Read more
The People’s Bank of China (PBoC) has introduced an innovative offline SIM card-based solution for its digital yuan, allowing users to make payments even when their phones are powered down. This new development aims to cater to users with 2G phones who previously couldn’t access digital currency. Earlier this year, a similar solution was launched exclusively for smartphone users, utilizing near-field communication (NFC) technology. However, the latest innovation makes use of hardware embedded in SIM cards, expanding the reach of the digital yuan.
The PBoC has updated its app to enable Android phone users to utilize their SIM cards as “hard” (offline) CBDC wallets. The central bank’s partners, including major telecom giants China Mobile, China Telecom, and China Unicom, as well as state-owned commercial banks Industrial and Commercial Bank of China and Bank of China, have also announced the launch of SIM card-based “hard wallet products.” These advancements are expected to significantly enhance the digital yuan’s payment capabilities and extend its network-free functionality.
China’s “super SIM card”
To take advantage of this new feature, citizens need to obtain a “super SIM card” from their carriers. Once they have replaced their existing SIM cards and launched the digital yuan app on their phones, they will find an option to “open a SIM card hard wallet.” This enables them to make touch-based payments to merchants even when their devices are powered down or lack network connectivity.
Presently, this innovation is limited to Android phone users with NFC functionality. No information has been provided regarding iOS users or owners of 2G phones. However, SIM-based wallets are expected to be particularly beneficial for those using 2G devices or smartphones without NFC capabilities. Given that approximately 20% of Chinese mobile users still utilize 2G phones, it would be logical for the PBoC to continue moving in this direction with future updates.
The ultimate plan of the PBoC regarding SIM-based wallets has not yet been disclosed. However, recent developments, such as the pilot project in Quingdao where electricity- and network-free CBDC payments were tested on the metro system, indicate a strong push toward expanding the accessibility and usage of the digital yuan. These advancements signify China’s commitment to furthering the adoption of its central bank digital currency and creating a more inclusive digital payment ecosystem.
文章来源于互联网:China’s offline SIM card wallet allows payments with digital yuan even on ancient phones