New Huawei Mate 40 Smartphone to Support Digital Yuan Hardware Wallet

Huawei has announced that its next series of Mate 40 smartphones will support the hardware wallet for China’s central bank’s digital currency (CBDC), the digital yuan.

October 30, 2020 | AtoZ Markets – Tech giant Huawei has unveiled the Mate 40 smartphone with a built-in hardware wallet for the digital currency of China’s central bank, according to an official Huawei post on Chinese microblogging website Weibo on October 30.

Huawei Mate 40 features digital yuan hardware wallet

New Huawei Mate 40 Smartphone to Support Digital Yuan Hardware Wallet

The company claims the Huawei Mate 40 will provide DCEP security. Users will be able to carry out offline transactions.

At this stage, it does not say if Mate 40 owners will be able to directly convert fiat currency to digital yuan. However, a Huawei spokesman noted that the development of the wallet was the next step in using the People’s Bank coin on mobile devices.

Earlier, the Chinese regulator announced its readiness to test an “offline wallet” for the digital yuan.

When will China’s digital yuan launch?

As AtoZ Markets reported, Starbucks and McDonald’s are reportedly among 19 restaurants and retail shops that will test China’s digital yuan. Also, the Agricultural Bank of China has already developed a test user interface for a DC/EP wallet that features how the digital yuan would be transacted.

However, the People’s Bank of China has said the ongoing testing does not mean the digital yuan has been launched officially. Earlier this year, the central bank said the digital currency is “progressing smoothly” and that its “top-level” design has been completed. The official launch date, however, still remains unknown.

The increasing interest and developments towards central bank digital currencies (CBDCs) brought attention from world watchdogs. G20’s Financial Stability Board (FSB) recently made ten recommendations for a common regulation on stablecoins, including CBDCs and Facebook’s Libra.

As a reminder, Ventures Managing Partner Dovi Wang believes that thanks to the new means of payment, the People’s Bank of China will strengthen its control over monetary policy.

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