Huawei has incorporated China’s central bank digital currency (CBDC), the digital yuan, into its latest operating system, HarmonyOS NEXT. This integration is set to reach up to 1 billion users by making the digital yuan accessible directly through Huawei smartphones.
HarmonyOS NEXT: Huawei’s Latest Operating System
Launched on October 22, 2023, HarmonyOS NEXT (also known as HarmonyOS 5.0) is Huawei’s third operating system and the first developed entirely in-house. Now the world’s third-largest OS behind Android and iOS, HarmonyOS NEXT supports exclusive applications designed for the platform, highlighting Huawei’s post-2019 innovation in response to U.S. restrictions on using Google’s ecosystem.
The operating system initially debuted on smart TVs and wearables, but by 2021, it began expanding into Huawei’s smartphones. With the digital yuan integration, users won’t need a separate app, making CBDC usage more streamlined and accessible. Enhanced wallet management features and compatibility with various financial applications are anticipated, along with plans to integrate the digital yuan across IoT devices.
This move also enhances the People’s Bank of China’s oversight capabilities in digital currency transactions, bolstering security.
Digital Yuan’s Steady Expansion
The digital yuan’s influence is growing, with around 22.6 million wallets active among Beijing residents alone. Recently featured at events like the 2024 China Science Fiction Conference and the Craft Beer Festival, the digital yuan is seeing an uptick in domestic use.
In a groundbreaking shift for international aviation, the International Air Transport Association (IATA) announced on October 29 that it would begin accepting digital currencies, starting with the digital yuan. “China is one of the world’s most advanced nations in digital currency adoption,” stated IATA’s senior vice president, Muhammad Albakri, as they prepare to make it the 74th currency processed by the association by year’s end.
China’s Updated Anti-Money Laundering Law and Virtual Assets
China also plans to revise its outdated Anti-Money Laundering (AML) law, which has been in place for over 17 years and does not fully address the risks associated with virtual assets. According to Andrew Fei from King & Wood Mallesons, updating the AML law is essential to meet current international standards and best practices, aligning with guidelines from the Financial Action Task Force (FATF). Although rated “largely compliant” with AML recommendations, China’s prohibition on most crypto activities exempts it from some criteria.
For the latest updates on digital currency and blockchain advancements, visit CentBit.Online – Crypto & Blockchain Expert Bangladesh.
