Chinese telecommunications company Huawei is integrating the digital yuan central bank digital currency (CBDC) into its HarmonyOS NEXT operating system, according to the local press. The integration will make the digital currency more accessible and easier to use for up to 1 billion smartphone owners.
Improving payment options
The HarmonyOS NEXT operating system, otherwise known as HarmonyOS 5.0 upgrade, was introduced on Oct. 22. It is the third Hauwei operating system and the first it developed itself.
It is also the third-most popular operating system in the world, after Android and iOS. Unlike previous versions, HarmonyOS NEXT will only host apps native to HarmonyOS.
Source: Li Zexin
Huawei developed HarmonyOS after Google “banned” the company in 2019 following the US government imposing sanctions on the company. HarmonyOS was first used in smart televisions and smartwatches, reaching telephones in 2021. Plans were made at that time to integrate the digital yuan.
Now that it has happened, users will not need to download the digital yuan app to use the CBDC. Wallet management services and interaction with other financial apps will still be improved. The digital yuan will be further integrated into chips, modules, equipment and operating systems of the Internet of Things, according to another source.
The People’s Bank of China will have enhanced security and monitoring capabilities thanks to the integration as well.
Related: Chinese court sentences gang for money laundering using digital yuan
The digital yuan gets around
The digital yuan is making slow, steady progress on many fronts. In recent days, an event with the digital yuan was held in Beijing to coincide with the 2024 China Science Fiction Conference.
The digital yuan also played a role in the city’s Craft Beer Festival and the 2024 World Table Tennis Championships. Residents of Beijing own 22.6 million digital yuan wallets.
On Oct. 29, the International Air Transport Association (IATA) announced it would begin accepting digital currencies. The digital yuan was the first to be selected. “China is one of the most advanced countries in the world in the adoption of digital currency,” IATA senior vice president Muhammad Albakri said.
The digital yuan will be the 74th currency the IATA handles when it starts accepting it before yearend.
Magazine: How the digital yuan could change the world… for better or worse