China is pressing for US fast-food chain McDonald’s to push digital currency into its central bank at its Chinese headquarters ahead of the Winter Olympics in February. The server of the British daily Financial Times (FT) writes about it. But critics say the system is not secure.
Beijing According to his sources, the British newspaper is also pressuring other American companies to start adopting the digital currency known as e-CNY.
The digital yuan is a project of the Central Bank of China that allows you to make payments using a mobile application. Other central banks are also preparing to experiment with digital currencies, but the Chinese currency is the most advanced in its development. According to China’s plan, the electronic yuan coexists with cash.
McDonald’s is currently allowing digital wallet payments at 270 locations in Shanghai as part of a pilot project. But this is not enough for the government and demands to extend this possibility to include the whole country.
According to the Financial Times sources, Beijing is also pressing the main sponsor of the Olympics, the payment company Visa. According to them, the US Olympic team sponsor, sportswear manufacturer Nike, is also feeling the pressure. But all three companies refuse to confirm these facts.
According to Daryl Duffy, who works on the electronic yuan project at Stanford University in the US, the digital currency will have a slower start than planned due to the pandemic. However, the scientist believes that all large companies are the target of the efforts of the Chinese authorities, and American companies are no exception. However, well-known American brands will add prestige to the project, according to FT.
Some US critics say Washington should focus on the security risks of the new currency. Access to financial transactions could further facilitate Beijing’s ability to exercise control. Some believe that if companies do not gain favor with the government, such as Swedish clothing chain H&M and Nike in the past, which have criticized forced labor in China, the government could block consumer digital wallets for payments in its branches.
According to Republican MP Michael Macau, the digital yuan is a new currency, but the Chinese Communist Party wants to use it to isolate itself internationally.
“Unfortunately, the companies that make this possible are thinking more about profits in the coming quarters than they are about global rules in the next quarter century,” McCulla was quoted as saying by the British newspaper.
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