The People’s Bank of China issued a press release on Monday stating that it has recently interviewed the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank of China, Industrial Bank, and Alipay (China) with limited internet technology regarding banks and payment institutions providing services for virtual currency trading Companies and other banks and payment institutions. This move is aimed at combating Bitcoin and other virtual currency trading hype and maintaining financial security and stability.

According to people familiar with the matter, Ya’an City in Sichuan Province has assured relevant provincial departments that all Bitcoin and Ether mining companies will be cleaned up within one year.

After the Fed’s policy stance turned to hawks last week, the market’s interest in risky assets has diminished. “If, as I expected, the global trend of buying everything this week cools down further, then Bitcoin will feel the cold wind,” Oanda Asia Pacific Pte. Said Jeffrey Halley, senior market analyst at.

Some commentators said that with increasingly strict regulations, China’s computing power-the computing power used for mining and processing blockchain transactions-is waning

The People’s Bank of China issued a press release on Monday stating that it has recently interviewed the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank of China, Industrial Bank, and Alipay (China) with limited internet technology regarding banks and payment institutions providing services for virtual currency trading Companies and other banks and payment institutions. This move is aimed at combating Bitcoin and other virtual currency trading hype and maintaining financial security and stability.

According to people familiar with the matter, Ya’an City in Sichuan Province has assured relevant provincial departments that all Bitcoin and Ether mining companies will be cleaned up within one year.

After the Fed’s policy stance turned to hawks last week, the market’s interest in risky assets has diminished. “If, as I expected, the global trend of buying everything this week cools down further, then Bitcoin will feel the cold wind,” Oanda Asia Pacific Pte. Said Jeffrey Halley, senior market analyst at.

Some commentators said that with increasingly strict regulations, China’s computing power-the computing power used for mining and processing blockchain transactions-is waning

“Red envelopes”, referring to the traditional cash prize distribution, will be distributed to 200,000 winners and they will have to download an app to use the prize for purchases at designated locations. in the city. Those who want to buy lottery tickets can register from 6/6. The winner will be announced a few days later and will have to spend the prize money by June 20. China is a promising player in the global race for central bank digital currencies (CBDCs) and has conducted trials in several major cities such as Shenzhen and Shanghai. The trial in Shenzhen in January awarded a reward of 20 million yuan. The People’s Bank of China (PboC) aims to be the first major central bank to issue an eCNY, part of an effort to internationalize the yuan and reduce its dependence on the global banking system without USD prevails. eCNY may also weaken Ant Group’s Alipay and Tencent’s WeChat Pay in payment systems.

According to the Bloomberg Over the past time, many international experts have expressed concern about China launching a national digital currency. British historian Niall Ferguson predicts that the digital yuan threatens to threaten America’s dominance in the global financial industry. Michael Hasenstab, head of investment fund Franklin Templeton, said that the digital yuan will weaken the position of the dollar, the reserve currency in the world. The administration of US President Joe Biden is studying the potential threat of the digital yuan to US national interests. However, those who are actually using their digital NTD are indifferent. Shenzhen is the city that runs the largest-scale digital yuan testing campaign. Reply Bloomberg Participants said they were not interested in leaving Ant Group or Tencent Holdings’ online payment apps. Online payment apps have been replacing cash in China for a long time. Photo: Getty Images. No conversion is intended “I’m not excited at all”, Bloomberg quoted Patricia Chen, who works in the telecommunications industry, as saying. She is one of more than 500,000 Shenzhen residents eligible to participate in the digital yuan trial. In this test, participants will download the government’s e-wallet application on their phones, connect to their bank accounts, and can convert up to 10,000 yuan ($ 1,548) in cash to digital currency. number (e-CNY). Similar to Alipay’s Ant Group app and Tencent’s WeChat Pay, digital yuan transactions are done very quickly using QR codes. When there is no Internet, users can use near field communication technology to make payments. Vera Lin – 25, an employee of a financial company in Shenzhen – said using digital yuan is quite easy. However, she has no intention of switching to digital yuan as the current online payment applications work seamlessly with other e-commerce services and platforms. Many people in Shenzhen said they have no intention of switching to digital yuan altogether. Photo: Reuters. Many stores participate in a trial of a 10% discount on digital yuan customers. However, that was not enough to convince Lin. She said Ant Group or Tencent’s platforms often offer discounts on many services, from ride-hailing to food delivery. Privacy is also a concern for Jan Chen, a 33-year-old civil servant. “The fact that the authorities can track every payment transaction is scary,” Chen said. I’m not excited at all User Patricia Chen In addition, some merchants and store owners revealed that they are concerned that information about all transactions goes directly to government databases even though the People’s Bank of China (PBOC) previously secured most of the delivery. translation will be confidential. In March, a representative of the Institute of Cryptocurrencies Research confirmed that PBOC will not directly know the identity of the user. However, the Chinese government may obtain information from financial institutions if it is suspected of illegal conduct. In addition, PBOC also encourages stores and merchants to use digital yuan by using free of charge. Currently, Alipay and WePay apps charge 0.6% per transaction. Difficult to take market share The yuan currently accounts for only 3% of total global payments. Expert Zennon Kapron, Director of consulting firm Kapronasia (Singapore) said that the digital version will only help the Chinese currency increase its market share by 1%. “The global impact of the digital yuan will be very small, unless China changes its economic structure and financial system,” said expert Kapron. Chinese officials themselves also show restraint when talking about the digital yuan. Last month, Mr. Li Bo – PBOC’s deputy governor – affirmed that China is developing a digital yuan to serve the domestic market, not with the intention of replacing the dollar. Previously, former PBOC Governor Zhou Xiaochuan said the digital yuan was a solution to help China fight the potential threat from cryptocurrencies like Bitcoin. Kapron predicts that if the digital currency fails to attract users, the Chinese authorities will take steps to increase the control of data collected by internet and financial companies such as Ant Group and Tencent. . Bloomberg Intelligence analyst Francis Chan also thinks that Chinese authorities can force Internet platforms and businesses to use the digital yuan. Chan and BI analyst Sharnie Wong predict that the electronic yuan will be widely used in China before the 2022 Beijing Olympics. It is likely that the digital yuan will take up 9% of the domestic online payment market share by 2025. That will be a big change, but the digital yuan still has a long way to go before the challenge. status of Alipay and WePay. These two payment applications account for a total of 90% of the market share in China. Expert Michael Ho, director of financial services at Oliver Wyman, also said that convincing the world to accept the digital yuan even more difficult.

China has big ambitions for the digital yuan – Photo: CGTN As China moves towards issuing the world’s first government digital currency, the debate about it is getting hotter than ever. Historian Niall Ferguson describes China’s e-yuan as a “dangerous challenge” to the US financial hegemony over decades. Meanwhile, Michael Hasenstab, chairman of investment firm Franklin Templeton, said e-CNY could undermine the role of the dollar as the reserve currency of the world. However, according to Bloomberg, when talking to people already using the digital yuan in China, the response was not very positive. APPEARANCE OF DOMESTIC USERS In Shenzhen – the tech hub is experimenting with using the digital yuan – most Bloomberg survey participants showed little interest in switching from popular mobile payment systems. currently such as Alipay of Ant Group or WeChat Pay of Tencent. Ant Group and Tencent are dominating the digital payment market in China with WeChat Pay and Alipay apps – Source: iResearch / Bloomberg Some are concerned that the digital yuan could be a tool for the authorities to access their financial data in real time. “I am not interested at all,” said Patricia Chen, 36, who works in the telecommunications industry, Chen is one of more than 500,000 people in Shenzhen eligible to test the yuan. While none of the Bloomberg survey participants had in-depth knowledge of the role of the digital yuan in the global foreign exchange market, their indifferent response showed the challenges faced by the administration. Chinese President Xi Jinping faces when he applies this currency at home and abroad. “I’m not interested at all” … “I’m afraid the authorities can track all my transactions” … E-CNY users According to Bloomberg, even if the Chinese authorities persuade or force citizens to accept the digital yuan, it will take a long time to do the same with international consumers and businesses. they have been wary of Beijing’s capital controls so far. With Vera Lin, 25, working for a finance company in Shenzhen, using the digital currency is not too difficult. However, Lin argues that users like her need a greater incentive to switch to the digital yuan altogether, because existing digital payment options are so reliable and work seamlessly within the platforms. other services, from social networks to e-commerce. Even a 10% discount on RMB purchases was not enough to lure Lin. The 25-year-old says platforms run by companies like Ant regularly offer discounts on everything from ride hailing to food delivery. Meanwhile, Jan Chen, a 33-year-old civil servant, is concerned about privacy issues. “I’m afraid the authorities can track all my transactions,” Chen said. China is testing the digital yuan in several provinces, including the largest scale in Shenzhen city, Guangdong province – Photo: Xinhua In a country where tax compliance is not as strict as China, many entrepreneurs are wary if information about their transactions is fed directly into government databases. Some fear that data from digital yuan transactions could be collected in real-time to monitor political disagreements or international businesses. competition with Chinese state-owned enterprises. Launched in 2014, the digital yuan project was promoted by then PBOC Governor Zhou Xiaochuan, who has long advocated the creation of a new international data currency to replace the dollar. . Zhou sees the e-CNY as a tool to counter potential threats from cryptocurrencies like Bitcoin or Facebook’s Diem (formerly known as Libra). THE COUNTRY IS HARD, IT’S ALTERNATIVE The PBOC has tried to quell these concerns by freeing the use of the digital yuan to retailers (they currently have to pay a 0.6% fee for transactions on Alipay and WePay), and pledged to that most of their transactions will be anonymous. In March, Mu Changchun, director of the PBOC’s Digital Money Research Institute, said the central bank would not directly grasp the user’s identity, but that they could get this information from financial institutions. in the event of a crime. Zennon Kapron, CEO of consulting firm Kapronasia, said that if the digital yuan is not gaining traction in the long term, the Chinese government may turn to coercive use. Beijing has begun to take moves to gain control over the data collected by technology and financial companies like Ant and Tencent. According to Francis Chan, a senior analyst with Bloomberg Intelligence, even if Chinese lawmakers do not go that far, they can ask for more co-workers from the vendors and operators of the Internet platform. digital yuan on your own payment options. “The e-CNY only partially solves the problem, which is the payment infrastructure part. However, just solving this problem does not help solve the whole problem “… Michael Ho, Director of Financial Services, Oliver Wyman Recently, the platforms MYbank (invested by Ant) and WeBank (invested by Tencent) have been added as options on the e-CNY application, although not yet available. Chan as well as Bloomberg Intelligence analyst Sharnie Wong forecasts that the digital yuan could be put into use across China before the 2022 Beijing Olympics and take 10% of the market share in electronic payments in the country by year. 2025. This is not a small number but still cannot compete with the dominant positions of Alipay and WePay – two e-wallets with total market share of over 90%. In the country it is difficult, to persuade international users to use the digital yuan is much more difficult. “The e-CNY only partially solves the problem, which is the payment infrastructure part. However, simply solving this problem does not help solve the whole problem, “said Michael Ho, director of financial services at Oliver Wyman, commented. Many people are skeptical of the ability to fulfill China’s ambitions to internationalize the yuan – Photo: Getty Images According to Zennon Kapron, on the international arena, despite its great ambitions, the digital version of the yuan is unlikely to boost the share of the Chinese currency’s global payments by one percentage point, from below. 3% current. Many analysts are also skeptical of the yuan’s international application ambitions in Xi Jinping’s plan to reduce dependence on the US-led financial system.

According to the Bloomberg Chinese tech giants like Jack Ma’s Alibaba and Tencent Holdings operate similarly to America’s Facebook and Alphabet. They mine user data to refine digital services. Data strengths will lead to better products. As a result, large technology corporations become richer, more powerful and easily dominate the market. Over the years, the Chinese government has gone further than the rest of the world in tightening control of the Big Tech group. In March, Beijing publicly plans to “rule” platform companies that accumulate data to monopolize and swallow smaller competitors. Chinese authorities fined Alibaba $ 2.8 billion for abusing their dominant market position. Dozens of other major Internet companies also spent a month correcting their anti-competitive practices. China is tightening control of major tech corporations, including Alibaba and Ant Group of billionaire Jack Ma. Photo: Reuters. Risk of nationalization of data Beijing is pouring money into digital infrastructure, drafting new data usage laws, and building new data centers across the country. China’s goal is to be at the forefront of economic transformation in the coming decades. “It’s not a short-term initiative. China really sees data as an economic engine,” said Kendra Schaefer, Head of Digital Research at Trivium China. According to the China Institute of Information and Communication Technologies, China’s digital economy grows much faster than GDP in 2019. Market research firm IDC predicts China will hold about 1. / 3 of the world’s data in 2025, or about 48.6 zettabytes, 60% more than the US. The Chinese regime’s challenge is to get big tech companies to join. Those are the organizations that hold the most data in a country of 1.4 billion people. Companies like Alibaba and Tencent have benefited when China blocked foreign companies like Google and Facebook. Now, they have to share those benefits Professor Zhao Yanqing At a Chinese economic forum, professor Zhao Yanqing at Xiamen University pointed out that big tech companies have to nationalize data. “Companies like Alibaba and Tencent benefit when China blocks foreign platforms like Google and Facebook. Now, they have to share those benefits,” he added. However, most analysts say that is unlikely. Nationalization of data can hamper innovation. Beijing is in need of technological breakthroughs as the US works with its allies to prevent China from making new strides. “China needs highly competitive companies,” said Associate Professor Lizhi Liu at Georgetow University. “Nationalization of data will hurt technology companies. If data is taken away, they also lose their motivation and ability to innovate,” the expert added. Beijing’s difficult position In recent years, Chinese lawmakers have turned their attention to security. According to a law in 2017, authorities will have access to most personal data when necessary, even requiring foreign businesses to store data of Chinese customers in the country. Chinese leaders are now stepping up the use of big data to improve government services. Firefighters can use data to respond more quickly to calls. Hospital data will help track people down and prevent Covid-19 from spreading widely. Data lays the foundation for everything from smart cities to financial regulation to surveillance activities against dissidents. The Chinese authorities are also developing the digital yuan, competing with Ant Group’s Alipay and Tencent’s WeChat Pay. These two platforms now dominate the Chinese mobile payments market. Ant Group’s Alipay and Tencent’s WeChat Pay now dominate the Chinese mobile payments market. Photo: Reuters. The digital yuan will allow the People’s Bank of China to collect huge amounts of data about people’s transactions. Authorities have also made significant progress in the corporate social credit measurement system, from paying taxes, protecting the environment to product quality. The Chinese authorities insist that they will not force businesses to deliver data. “As for the use, development and exchange of data, we are still exploring the mechanisms,” said Hu Jianhua, deputy general manager of the Guizhou Big Data Development Administration. “Enterprises have ownership of the data. We encourage, but do not force them to, disclose the data,” he added. Data privacy is China’s “biggest obstacle” in dealing with the tech giants Expert Angela Zhang of the University of Hong Kong Another solution is that the government also invests in businesses. Last month, Bloomberg reported that China has proposed to set up a joint venture led by the People’s Bank of China (PBoC) with major technology corporations. The joint venture will monitor the data of hundreds of millions of users. Financial Times reports that billionaire Ma’s Ant Group declined the proposal. However, according to Bloomberg , a few years ago, when not agreeing to share data with the PBoC, Alibaba and Tencent faced many troubles. “Data privacy is China’s ‘biggest stumbling block’ in dealing with the tech giants. There is a conflict in protecting user privacy and fostering competition among these giants. Different backgrounds, “commented Angela Zhang, director of the China Law Center at the University of Hong Kong. China’s biggest companies are also looking to reduce damage from Beijing’s new rules. After Alibaba’s investigation is over, CEO Daniel Zhang said the company will continue to work with the data privacy regulator. Last month, Tencent’s Pony Ma proposed stricter rules for Internet businesses, including Tencent. He also has a “voluntary meeting” with the country’s antitrust agencies.

According to the New York Times billionaire Jack Ma – China’s most famous businessman – is away from the limelight. Close people revealed that he spent his time painting and practicing tai chi. The Chinese government is bringing a series of technology corporations into sight. The enormous wealth and influence of these businesses are said to be beyond the limit. Jack Ma, Alibaba e-commerce conglomerate and fintech (finance and technology) company Ant Group are Beijing’s biggest targets. European and American authorities have been trying to tighten control of the tech giants for years. However, they cannot make a big difference like what happened to the Alibaba founder in China. The Chinese government insists that businesses must commit to placing social stability above profits. Tencent founder Pony Ma (left) and billionaire Jack Ma at an event in Beijing in 2018. Photo: New York Times. The unprecedented “punishment” campaign The Beijing government is not just tightening the control of Alibaba. Ant Group CEO Simon Hu resigned in March. Just a few days later, Pinduoduo founder Colin Huang stepped down as chairman. Also in March, at a meeting, Tencent founder Pony Ma proposed stricter rules for Internet businesses, including Tencent. He also has a “voluntary meeting” with the country’s antitrust agencies. Last week, China’s antitrust agency summoned top 34 Internet companies to discuss new rules of fair competition. The discussion revolves around changes in business. Companies are committed to taking it seriously. “The new rules will require Internet platforms to look back on how they innovate in the future. And as a result there will be less innovation,” said Gordon Orr, a board member of Meituan, company. Chinese food delivery, comment. However, New York Times The Beijing government will not be too heavy on Alibaba and other Chinese Internet corporations. Even as tightening oversight, Beijing still praised the group’s contributions to the economy. Pinduoduo founder Colin Huang stepped down from his chair as the company’s chairman. Photo: New York Times. Chinese President Xi Jinping wants the economy to be driven by innovation from Chinese tech corporations, instead of big foreign ones. “It may be too early to declare that Jack Ma has failed”, New York Times comment. “To the success and performance of the Chinese economy, Alibaba is more important than any other business,” commented Richard McGregor of the Lowy Institute. “The Chinese authorities want to continue reaping the benefits of Jack Ma’s company, but on their terms. Beijing doesn’t nationalize Alibaba. The company is just narrowing its operations.” “Alibaba has a perfect opportunity to grow into a world-class company,” said Wang Guoping, an official in Hangzhou city (where Alibaba is located), in the 2000s. “What a world-class company needs most is a soul, a leader, a world-class businessman. I believe Jack Ma meets those standards, “he added. Change your attitude According to Porter Erisman, one of Alibaba’s first executives, in the 2000s, most employees at Alibaba were just trying to make a lot of money. Jack Ma alone had another concern. He fears that one day the company will become too big. And Alibaba could be under pressure for holding huge market power. In 2011, Jack Ma understood that his ambitions could make regulators dissatisfied. Ma quietly took over Alipay – Alibaba’s payment service. That move angered one of Alibaba’s biggest shareholders – Yahoo -. However, according to Jack Ma, that is the action needed to meet the new Chinese regulations. Alipay later became Ant Group. As Alibaba grew, Jack Ma began meeting presidents and movie stars admired by many Chinese businessmen. “That changed the views of Jack Ma about himself and the Chinese government,” said Duncan Clark, Chairman of BDA China, commented. Mr. Simon Hu, CEO of Ant Group, resigned in March. Photo: New York Times. When Jack Ma stepped down as Alibaba chairman in 2019, a Chinese state-run newspaper commented: “There is no such thing as the Jack Ma era, only Jack Ma is part of this era.” Chinese leaders need the private sector to sustain economic growth. However, they do not want this area to exert too much influence on society. In October 2020, when Ant was preparing to go public (IPO), Jack Ma criticized Chinese financial regulators at a conference in Shanghai. He describes the Chinese banking system “operates like a pawnshop.” Shortly after, Ant’s IPO was ordered to be canceled. The Chinese government wants to continue reaping the benefits of Mr. Ma’s company, but on their terms Richard McGregor, senior fellow at the Lowy Institute “In China, it is difficult to say that the emperor is not dressed,” commented Kellee S. Tsai at the Hong Kong University of Science and Technology, referring to the short story “The Emperor’s New Clothes”. Mr. Ma has also rarely appeared since then. According to the source of the New York Times , in January, he showed up for an internal chat. The staff then shared Mr. Ma’s message to reassure everyone. Recently, the Hurun Report team (based in Shanghai) estimated that for the first time after 3 years, Mr. Ma was not among the three richest people in China. First place belongs to Mr. Zhong Shanshan, a well-known billionaire behind a group of famous bottled water and pharmaceutical companies.

In addition, this company will serve other financial institutions such as state-owned banks to compete in lending with fintech companies. According to a source close to the Financial Times, Ant Group wants to lead the new company. But PBoC said that this will create a conflict of interest. China wants to take control of Ant Group’s huge data warehouse. (Photo: FT) “The first priority is to ensure that the new business fully complies with the regulations. State participation will help the PBoC achieve those goals,” a source revealed. In January, the PBoC announced regulations requiring Chinese companies to secure government approval before being allowed to provide personal credit services. These companies have to ensure that they have 3 licenses and all are subject to government control. PBoC officials held a conversation with Ant Group executives on April 12. This month, Chinese regulators also asked Ant Group to restructure and sanction Xi. Alibaba Group Jack Ma’s record fine of 2.8 billion USD. Banks in China have long complained that Ant Group has benefited by not having to comply with the same strict regulations on lending as they do. The company has established a dominance in China with more than 700 million users a month on Alipay, an Alibaba mobile payment app. By the end of June 2020, Ant Group had developed a consumer lending platform with outstanding credit to about 1,700 billion yuan ($ 262 billion), more than any Chinese bank. Come on. In addition, the fintech company charges banks for loans on their apps. “Ant Group’s credit database offers a lot of value to banks,” said a former PBoC official. A person knowledgeable about this issue commented: “Ant Group needs to find a way to legalize this data warehouse. The proposed solution is to set up a credit reporting company approved by PBoC”. But there are also opinions that state control could affect the ability to collect and analyze information for Ant Group’s core business units, including consumer lending. “Ant Group really wants to hold on to its most valuable assets,” said a source. The central bank of China will release a report this Sunday on the creation of a state-controlled data company. However, neither Ant Group nor the PBoC have yet to comment on this. Phuong Anh (According to Financial Times)