Huawei has integrated China’s digital yuan central bank digital currency (CBDC) directly into its latest operating system, HarmonyOS NEXT, making the currency accessible to as many as 1 billion smartphone users. The HarmonyOS NEXT update, released on October 22, introduces native digital yuan capabilities, allowing users to make payments seamlessly without downloading an additional app.
Simplified CBDC Payments with HarmonyOS NEXT
HarmonyOS NEXT, Huawei’s third version of its operating system, aims to improve payment options by making the digital yuan available directly on smartphones and IoT devices. Unlike previous iterations, HarmonyOS NEXT exclusively supports apps developed for Huawei’s ecosystem, enhancing speed and security for users. This integration allows for built-in digital yuan wallet management, potentially expanding digital yuan use across Huawei devices, including IoT applications such as smart TVs and wearables.
Huawei’s digital yuan integration also aligns with the People’s Bank of China’s (PBOC) objectives for enhanced security and monitoring. As the digital yuan becomes more embedded within mobile hardware, modules, and operating systems, it further cements its role in China’s financial infrastructure.
Growing Adoption of the Digital Yuan
The digital yuan continues to expand across multiple platforms and events, supporting its steady rollout nationwide. Recently, Beijing residents could use the digital yuan at events like the 2024 China Science Fiction Conference and the Craft Beer Festival. Beijing alone has over 22 million digital yuan wallets, reflecting a growing local adoption rate.
The International Air Transport Association (IATA) recently announced it would accept the digital yuan as the 74th currency it handles, citing China’s rapid advancement in digital currency adoption. This will allow Chinese travelers to use the digital yuan internationally by the end of 2024, making the currency a central player in global digital finance.
With this latest HarmonyOS update, Huawei not only expands the digital yuan’s reach but also strengthens China’s position as a leader in the adoption and implementation of digital currencies.
