Honor, a Chinese smartphone company, unveiled the first Snapdragon-powered device to support digital yuan, marking a significant step forward in the People’s Bank of China’s objective of developing equipment for the digital currency.
Honor CEO George Zhao said yesterday that the Magic 3 would enable a digital yuan hardware wallet built on Qualcomm’s newest Snapdragon processor, the 888.
In its most recent white paper, the central bank stated that, unlike so-called soft wallets such as applications, hardware wallets have hardware-level security.
The PBoC has been pushing for new hardware uses of the digital yuan, with IT companies and banks developing new gadgets, including ATMs and a hardware wallet.
A Central Bank Digital Currency (CBDC) is fully digital, similar to bitcoin, but is regulated by a government or central bank, similar to traditional currency.
China is not alone in its desire for digital currency. Around the world, almost 80 nations are studying or developing their own digital money.
The US dollar remains the world’s de facto monetary reserve, but with so many nations, such as China, racing forward to establish their own CBDC, the US currency now confronts significant difficulties.
The United States must either follow the trend or find a better option or risk losing its place in the global economy to remain competitive.