What Happened?
Huawei recently officially launched a brand new operating system, HarmonyOS NEXT, in Shenzhen. This is the first system version that Huawei has completely separated from Android, with one of the highlights being an embedded digital Renminbi payment feature.
Users can directly enable digital Renminbi through the system without having to download an additional app to make payments, a major breakthrough for the popularization of digital currency.
This functional integration will make it easier for up to a billion smartphone users to access, acquire and use digital currency.
The built-in payment feature lowers the threshold; HarmonyOS users do not need to download a digital Renminbi app for payment.
China has been actively promoting the development of the “digital Renminbi” in recent years, positioning it as a Central Bank Digital Currency (CBDC), a digitized legal currency system created under the leadership of the People’s Bank of China.
Huawei has collaborated with the People’s Bank of China to embed digital Renminbi services into HarmonyOS NEXT, making it the world’s first operating system to support Central Bank Digital Currency (CBDC).
This move not only enhances the usability of digital Renminbi on smartphones but also brings more convenient payment services to up to a billion potential users.
When users want to choose digital Renminbi as their payment method at the merchant’s end, they can directly select the digital Renminbi cashier in their mobile phone and make online payments. In this process, there is no need to download any related app for digital Renminbi in advance, truly achieving a smooth experience of “use as soon as you get the phone”.
Furthermore, if users have other devices that also carry the HarmonyOS system, they can log in to use the digital Renminbi at the same time, making digital payments even more convenient.
Digital Renminbi payment has no boundaries, China actively promotes pilot programs
The launch of digital Renminbi not only enhances the convenience and security of payments but is also expected to replace some cash transactions, reduce illegal fund flows, and further strengthen the government’s supervisory role in the currency system.
The pilot of digital Renminbi began as early as 2020 and has been piloted in several cities. The pilot content includes consumers’ daily payments, government subsidy distribution, public transportation, and other scenarios to test the actual application effect of digital currency.
With the continuous expansion of pilot cities, application scenarios are becoming increasingly diverse, and even international tourists will be able to experience digital Renminbi payments for the first time at the 2022 Beijing Winter Olympics venues.
In addition to Huawei’s HarmonyOS, the digital Renminbi has frequently appeared at events throughout China and is gradually penetrating into daily life. According to official statistics, as of the end of June 2023, the transaction volume of digital Renminbi reached 1.8 trillion Renminbi (approximately 249.3 billion US dollars), and the number of e-wallets opened reached 120 million, showing the continuous expansion of digital currency in China.
The International Air Transport Association (IATA) also recently announced that it will accept digital currency payments by the end of the year, and the digital Renminbi will be among the first on the list.
While the combination of Huawei phones and digital Renminbi has undoubtedly enhanced convenience, it has also raised some concerns, such as issues of user privacy and data security. After all, once the digital Renminbi system is embedded, how to ensure that this information is not misused becomes a primary focus of user attention.
Balancing innovation and risk control will become an important issue that must be confronted in the promotion of digital currency, and whether China’s digital Renminbi can solve these issues one by one still requires time to observe.
Reference:
cointelegraph