BEIJING—China is introducing new rules for mobile payments in a move some experts say could pave the way for the future deployment of the country’s central bank digital currency — the e-CNY.
The People’s Bank of China (PBOC) has issued new regulations for mobile payments — the predominant payment method within the nation — that look to further stipulate the use and classification of payment collection barcodes in a bid to crack down on crimes such as illegal gambling.
Specifically, the new rules, set to take effect next March, will require merchants to use merchant barcodes for business activities rather than using personal collection barcodes. It’s common in China for small business merchants, such as food vendors, to use personal codes to collect payment, Forkast reported.
Clarification is Stated Goal
The PBOC has said in a statement the new rules are designed to clarify the use of personal collection barcodes to monitor relevant risks. The central bank said there have been cases where some businesses would use personal collection barcodes to transfer a large amount of operational funds, making it harder to monitor risks.
The new regulations come as China is actively developing its own digital currency. Many expect the e-CNY, also known as digital RMB, to be formally launched in time for the Beijing Winter Olympics in February, Forkast noted.