Victor Ugochukwu · Oct 22, 2020 . 5min read
Fast food giants Starbucks and McDonald’s are not part of China’s CBDC pilot
Both Starbucks and McDonald's, who were reportedly rumoured to be part of China's CBDC pilots, have not given any clarification for not taking part.
By Komal Joshi · Oct 15, 2020 . 6min read
As China is preparing to introduce its CBDC, Digital Yuan, anytime soon, the nation is going through various tests. Lately, it is reported that the pilot tests are still running on, on a small scale, and both retail and catering industries are part of these trials. Amidst this, reports say that Starbucks and McDonald’s, which are American fast-food giants, are not engaging in the ongoing Digital Yuan tests.
Starbucks and McDonald’s Amongst 19 Companies in CBDC Pilot?
Leading companies that were rumoured to be the part of this pilot test are not utilizing the Digital Yuan for payments. However, Starbucks and McDonald’s were among the 19 major companies in the CBDC pilot test. Nevertheless, they are still not taking part. Other major companies are Subway and Unmanned Automated Supermarket and the cloud project of UnionPay. However, reports state that none of these firms has joined in the ongoing tests. They are receiving digital payments via QuickPass, Alipay, and WeChat only.
Central Bank of China conducts a lottery to promote digital Yuan.
Moreover, none of the companies has circulated any official statements about Digital Yuan testing. Both Starbucks and McDonald’s have not given any justification for not taking part in the CBDC pilot. The Chinese authorities started the first Digital Yuan test in April 2020 and are now promoting it. Central bank PBoC is carrying a lottery worth $1.5 million. Approximately 2 million people have already applied for this lottery. After the conclusion of all the pilot tests successfully and central banks are content with the performance; thus, Digital Yuan will officially come into existence.
However, amidst the trials of China’s CBDC digital Yuan doing rounds, reports state that the People’s Bank of China (PBoC), the nation’s central bank, has commenced blacklisting accounts belonging to large crypto traders in an attempt to battle money laundering. The recent struggles come in line with a more comprehensive purpose of alleviating and ultimately abolishing criminal earnings and transactions.
Apart from China, the European Central Bank (ECB) is launching a public consultation. It is starting experiments to decide further on whether to issue digital currencies for the 19-nation currency club. Moreover, it will enable holders to make payments through the internet and possibly even offline. The concept of ‘digital euro’ comes as the Covid-19 pandemic has stimulated a transfer away from cash.
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Komal Joshi · Oct 22, 2020 . 5min read