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Chronicles

The story behind the story

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JD.com says it will launch a pilot program this month to test digital yuan, the cryptocurrency backed by China's central bank

Bloomberg Claire Che

Context & Ripple Effects

This is the moment China's central bank digital currency moves from state-run trials into mainstream commerce. The People's Bank of China had already expanded its digital-yuan pilot to a number of large cities in August, and Didi signed on a month earlier via a partnership with China's Digital Currency Research Institute to trial the CBDC on its ride-hailing platform.

First-order effects

  • JD.com becomes the first major e-commerce player named in the pilot, putting e-CNY checkout in front of mass retail shoppers in test cities alongside the ride-hailing use case Didi pioneered.

Second-order effects

  • Payment incumbents are pulled in behind it — WeChat Pay's later adoption of e-CNY shows rival platforms cannot sit out a currency their competitors accept, since acceptance becomes table stakes for merchants.

Third-order effects

The trend: China is rolling out its central bank digital currency by enlisting consumer platforms one at a time — ride-hailing first, then retail, then overseas banking channels — rather than through a single nationwide launch.

Discussion

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    China's second-biggest online retailer will become the country's first virtual mall to use digital yuan, the cryptocurrency backed by the central bank https://www.bloomberg.com/...