Chinese Government joins hands with its country’s biggest e-commerce giant, JD.com, to provide its assistance to the Central Bank of China in launching the Chinese digital Yuan.
According to news sources, on Monday a deal has been broke between the Central Bank of China and the country’s leading e-commerce company namely JD.com in which services have been sought from JD.Com in helping the Chinese Central bank to form an infrastructure for launching cash-equivalent Chinese digital Yuan.
As per the local media reports from China, an agreement for strategic cooperation has been duly executed between JD.com and the Central Bank of China, and in accordance with the terms and conditions of the agreement, JD.com will be responsible for developing applications and other ancillary technologies which would be compatible with any mobile devices as well as any blockchain technology. The purpose elaborated in the agreement is that the Central Bank of China intends to launch its very own digital currency, Yuan.
According to news sources, both entities will work in close collaboration with each other for the purposes of developing products which will include in particular the digital wallets. The products are supposed to be accessed both offline and online. Very recently the Central Bank of China has also successfully conducted tests of DCEP with state-owned banks and various other companies which are supported by Tencent and China’s Uber. DECP is known as “digital currency electric payment” which took 6 years in its development by the Central bank of China.
JD.com is the traditional rival of Alibaba.com which is yet another economic giant of China however JD.com’s revenue is more than US$83 Billion.
While China and the US are in the trade war for about four years now, yet currently China is taking lead from the US in the financial sector. Its trades are flourishing and its economic ties with other major economic players of the world such as Russia, Germany, the UK, and Europe are strengthening. Even the World Trade Organization (WTO) also held accused the US of imposing trade sanctions and tariffs upon China which according to WTO are violative of trading policies between the two countries. On the other hand, the value of the US dollar continues to decline.