Visual Hard Wallet for Digital Yuan: Nationwide Access, Enhanced Payments for Foreigners, Bridging the Digital Divide

Visual Hard Wallet for Digital Yuan: Nationwide Access, Enhanced Payments for Foreigners, Bridging the Digital DivideThe Digital Currency Research Institute of the People's Bank of China (PBOC) recently announced the launch of an innovative product for the digital yuan the visual hard wallet. This wallet leverages secure chip technology, offering services to users through specific hardware carriers like IC cards, mobile terminals, SIM cards, wearable devices, and IoT devices, enabling a "one card for all" application nationwide

Visual Hard Wallet for Digital Yuan: Nationwide Access, Enhanced Payments for Foreigners, Bridging the Digital Divide

The Digital Currency Research Institute of the People's Bank of China (PBOC) recently announced the launch of an innovative product for the digital yuan the visual hard wallet. This wallet leverages secure chip technology, offering services to users through specific hardware carriers like IC cards, mobile terminals, SIM cards, wearable devices, and IoT devices, enabling a "one card for all" application nationwide.

While not the first appearance of a digital yuan hard wallet, previous versions primarily facilitated payments through "tap-to-pay" transactions with merchant POS terminals. However, with the rapid development of electronic payments in China, QR code payments have become the dominant method for merchants, presenting a challenge for hard wallet innovation.

In April 2024, the "tap-to-pay" feature for the digital yuan app was piloted in Shenzhen, expanding the application of digital yuan hard wallets and providing convenient payment solutions for micro and individual businesses. In November, Shenzhen further introduced a visual hard wallet with a dynamic QR code, breaking the limitations of traditional hard wallets that only supported "tap-to-pay." This innovation enables both "tap-to-pay" and "scan-to-pay" functionalities, aligning with China's prevailing QR code-based payment landscape.

The visual hard wallet supports both "tap-to-pay" and "scan-to-pay" for merchants. This allows them to accept payments using POS terminals, barcode scanners, and mobile devices, making it particularly convenient for foreign visitors and senior citizens. Additionally, the wallet displays the balance, allowing users to track their funds easily. It is suitable for various scenarios, including merchants, taxis, subway systems, and buses, significantly enhancing payment convenience for foreigners in China.

Importantly, while leveraging the advantages of digitization, the digital yuan also emphasizes bridging the digital divide and prioritizes accessibility and senior-friendly design. The introduction of the visual hard wallet provides an alternative payment option for short-term foreign visitors who lack local mobile numbers and bank accounts and are accustomed to card payments. It also offers convenience to older individuals who might face difficulties using smartphones.

The Decision of the Central Committee of the Communist Party of China on Comprehensively Deepening Reforms and Promoting Chinese-Style Modernization, adopted at the Third Plenary Session of the 20th Central Committee, emphasizes the need to improve the systems for convenience in residence, healthcare, and payment for foreigners in China. In March this year, the General Office of the State Council issued the "Opinions on Further Optimizing Payment Services and Enhancing Payment Convenience," outlining specific demands for enhancing payment convenience.

Professor Ye Shuai, a finance professor at the School of Management and Economics, Chinese University of Hong Kong (Shenzhen), believes that improving payment convenience requires collaborative efforts from the government, society, and various sectors, including tourism, transportation, and others. In key locations, multiple payment methods should be offered, and financial security awareness should be enhanced. For foreign visitors, increased efforts are needed to popularize and promote the use of digital yuan wallets.

Industry insiders note that payment systems are akin to the capillaries of economic and financial operations, impacting national interests, people's livelihoods, and international reputation. Building a future of inclusive and convenient payment requires dedicated efforts to establish more effective systems and mechanisms.

The introduction of the visual hard wallet for the digital yuan highlights the continuous refinement and innovation within the digital yuan system. It not only provides a more convenient payment method for foreigners but also offers more options for senior citizens and other special groups, further promoting the popularity and application of digital yuan. In the future, the digital yuan will continue to innovate and contribute to building a more inclusive digital payment ecosystem.