China’s Central Bank, JD Digits to Build Virtual Yuan Ecosystem
Tang Shihua
DATE:  Sep 22 2020
/ SOURCE:  Yicai
China’s Central Bank, JD Digits to Build Virtual Yuan Ecosystem China’s Central Bank, JD Digits to Build Virtual Yuan Ecosystem

(Yicai Global) Sept. 22 -- The People's Bank of China and the fintech services affiliate of Chinese e-commerce giant JD.Com have agreed to cooperate on innovation in online and offline digital yuan scenarios.

The PBOC's Digital Currency Research Institute and JD Digital Technology, also known as JD Digits, will build a crypto-yuan wallet ecosystem together, Xinhua News Agency reported yesterday.

Digital Currency Electronic Payment, or DCEP, is a digital legal tender issued by the People's Bank of China. Mainly structured as a form of intangible cash in circulation equivalent to banknotes and coins, it is operated by designated institutions and exchanged with the public.

JD Digits will use the project as the basis for its work with the institute to promote research and development and construction of basic mobile and blockchain technology platforms, as well as integrating development of the virtual and real economies, the Beijing-based company said.

The plan for the China Beijing Pilot Free Trade Zone announced yesterday proposes support for the institute in building a financial technology center, a legal digital currency pilot zone, and a digital financial system in reliance on the central bank's trade finance blockchain platform and by forming a trade financial zone blockchain standard system and strengthening its supervision.

Yizhuang in Beijing's southern outskirts where JD Digits is based is expected to join the pilot free trade zone, according to the plan.

The present digital yuan pilot area comprises the '4+1' of closed tests in Shenzhen, Suzhou, Xiongan New District, Chengdu, and at the upcoming Beijing Winter Olympics.
JD Digits, renamed from JD Finance in September 2018, spun off from JD Group in 2017. It has applied to list on the Shanghai's Nasdaq-like Star Market. Valued at about CNY200 billion (USD29.5 billion), it will surpass Kingsoft's CNY150 billion market cap after going public.
JD Digit's business includes wealth management. It mainly uses Big Data, artificial intelligence, cloud computing and blockchain technology to provide merchants, financial institutions and governments with digital services.

The company's revenue reached CNY18.2 billion (USD2.7 billion) and its profit was CNY790 million (USD116.3 million) last year, according to its listing prospectus the Shanghai Stock Exchange published on Sept. 11.
Editor: Ben Armour


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