China’s New Digital Currency Tries to Limit Dominance of Alibaba and Tencent

The People’s Bank of China has recently launched a trial version of their digital currency which they hope will reduce the dominance of Alibaba and Tencent; “It is about the role of a digital currency for domestic retail use,” said a senior executive at the Hong Kong Monetary Authority familiar with the thinking at the PBoC to the FT. “They want a more level playing field for the banks. Retail payments are so dominated by Alibaba and Tencent while banks are less active in electronic payments.”; Alipay accounted for more than 55 percent of mobile payments in Q1 according to Beijing-based iResearch; the government allowed for the payments companies to gain so much dominance that many banks complained, now they are finding it hard to limit their impact; the PBoC hopes the new digital currency will take off so they can eventually erode the dollar’s global position. Financial Times.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

Sign up for our Newsletters

Every morning the Fintech Nexus News team scours the globe for the most important fintech stories of the day in the daily Global newsletter.

The Europe edition comes out on Monday, Wednesday, and Friday featuring the most important stories in European and UK fintech.

The Latin American newsletter arrives in your inbox on Tuesdays and Fridays. This is a trilingual newsletter featuring stories in Spanish, Portuguese, and English.

Join 20,000 subscribers!