[Weekly e-CNY] With Prosperity of Digital Yuan, The Fraud Prevails

The digital yuan (e-CNY) is a digital legal currency (CBDC) issued by People's Bank of China(the Central Bank of China). This year, the Chinese government introduced digital yuan payments to China's largest payment services such as WeChat and Alipay.

Since CBDC competition affect the fate of furue digital financial supremacy, the digital yuan, which is being considered currently at the forefront, has became a primary concern for governments.

These are the main factors of The digital yuan.

◇1. The Fraud Prevails Related to Digital Yuan
As the Chinese govenment's digital yuan promotion business expands, digital yuan fraud has been also emerging. Fraud methods include impersonation of a guard agency, impersonation of a platform, and similar reception. According to Shanghai Legal News, an elderly man in his 70s in Shanghai was also recently exposed to digital yuan phishing, but he avoided remittance due to persuasion from bank employees and police.

◇2. Chinese Fintech Company Developing The Platform Connected with Digital Yuan
Hangzhou fintech company 'Lianlian Pei' is planning to develop the digital yuan interconnection platform with 'Qingdao Guoxin Development', which have invested in the digital yuan comprehensive service platform. Both companies are planning to implement digital yuan payment programs used in transportation, tunnels, cultural tourism, hotels, and exhibitions.

◇3. Chongqing City Promotes Digital Yuan to Tourism Industry
Chongqing City announced that the Cityuse digital yuan for the development of cultural and tourism industries. The Chongqing Management Department of the People's Bank of China and Chongqing Branch of the Communications Bank announced that they plan to launch digital yuan applications to integrate tourism infrastructure construction and surrounding financial services in the Jiangjin-gu attractions of Mt. Sasean and Linhai.

The Chinese government predict that the digital currency will move through furture financial trends. Therefore the Chinese government has been implementing policies that lead the digital financial market including the digital currency.

권승원 기자 ksw@