The launch of China’s national digital currency is already enriching fintech companies
Shares of Chinese fintech companies are growing rapidly, as investors predict an increase in demand for payment services after the launch of the state digital currency.
Thus, the fintech industry-oriented CSI index in 2019 grew by more than 50%, showing better dynamics compared to other similar tools. Shares of the Beijing Certification Authority, which provides electronic authentication services, rose nearly 200%. In addition, the value of the shares of the largest provider of network security services 360 Security Technology Inc has increased by more than 50%.
In August, Deputy Director of the Payment and Settlement Decisions Division of the People’s Bank of China (PBOC) Mu Changchun said that the regulator had almost completed the development of the state digital currency and was ready to introduce it in the near future. According to Changchun, the tool is similar to the Facebook-developed Libra cryptocurrency and will be available on platforms such as WeChat and Alipay.
According to Reuters, investors hastened to invest in fintech companies, while not having clarity about the timing of the launch of a financial instrument. According to the statement of the central bank manager Yi Gang, at the moment they do not have any schedule or plan for the implementation of cryptocurrency.
According to representatives of the brokerage firm Soochow Securities, various companies, representatives of the banking and IT industries, as well as electronic wallet developers will be involved in servicing the digital currency and ensuring its circulation.
“We think that the Central Bank of China will continue to use the current infrastructure of commercial banks, and smartphones will be the main carriers of personal digital currency,” the company said.
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