The Postal Savings Bank of China has been designated as a research and development institution for the electronic Chinese yuan (e-CNY), giving the bank a first-mover advantage in the competition for a position in China’s electronic payments market, according to an article published by its owner, the state-owned China Post Group.
Along with China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, and Bank of China, the bank is one of six large state-owned banks designated for e-CNY development. The Postal Savings Bank, according to its website, focuses on rural, urban, and rural residents, as well as small and medium-sized businesses.
Various banks are attempting to compete in the development of e-CNY. As of the end of August, 35 banks, including state-owned banks, joint-stock banks, city commercial banks, rural credit cooperatives, and rural commercial banks, supported recharging e-CNY wallets.
The People’s Bank of China issued a white paper on China’s e-CNY research and development progress in July, stating that the digital yuan operates on a two-tier model, with the central bank issuing e-CNY and six leading state-owned banks accounting for its operation.