Huawei’s Integration of Digital Yuan into HarmonyOS NEXT: A Game Changer for Users 💡
This year, Huawei has taken a significant step towards enhancing its user experience by incorporating China’s digital yuan, a central bank digital currency (CBDC), into its latest operating system, HarmonyOS NEXT. This integration aims to provide a seamless experience for an estimated 1 billion smartphone users by enabling easier usage of the digital yuan through Huawei devices.
Officially revealed on October 22, 2023, HarmonyOS NEXT—which is also recognized as HarmonyOS 5.0—marks a pivotal advancement in Huawei’s technology journey. The operating system stands out as the third iteration from Huawei and is the first one created entirely by the company without external dependencies.
HarmonyOS NEXT: An Innovative Leap for Huawei 🌟
Positioned as the third most widely used operating system globally, trailing behind Android and iOS, HarmonyOS NEXT is uniquely crafted to support applications specifically designed for its ecosystem. This is a departure from its earlier versions, which were more reliant on Google’s software infrastructure.
The origin of HarmonyOS can be traced back to 2019 when the U.S. government imposed restrictions on Huawei, prompting the tech giant to innovate beyond the confines of Google’s ecosystem. Initially, HarmonyOS was introduced for smart TVs and wearable devices but saw its smartphone deployment unfolding in 2021, with plans to integrate the digital yuan as part of its forward-thinking strategy.
The newest integration means that users will not need to download a separate application to access the digital yuan, thereby simplifying the process significantly. Furthermore, upgrades are expected in wallet management functionalities, enhancing compatibility with other financial applications.
Additionally, Huawei is working on embedding the digital yuan into various components and Internet of Things (IoT) devices to expand its usability across a diverse range of platforms. This move is anticipated to bolster the People’s Bank of China’s oversight capabilities by improving transaction security and monitoring processes.
Notably, the digital yuan is gradually gaining traction in various segments of society. It was featured at significant events such as the 2024 China Science Fiction Conference and the Craft Beer Festival in Beijing, where local residents reportedly hold around 22.6 million digital yuan wallets, revealing a strong interest in this digital currency.
IATA’s Acceptance of the Digital Yuan: A Landmark Decision ✈️
In an important development for the international aviation industry, the International Air Transport Association (IATA) announced on October 29 that it will begin accepting digital currencies, with the digital yuan being the first choice. According to IATA senior vice president Muhammad Albakri, “China is one of the most advanced countries in the world in the adoption of digital currency.” This move will position the digital yuan as the 74th currency processed by IATA as the organization prepares for its integration by the end of the year.
China’s Revised AML Law: A Response to the Evolving Landscape of Virtual Assets ⚖️
This year, China disclosed plans to revise its long-standing Anti-Money-Laundering (AML) legislation in an effort to address the growing risks associated with virtual assets, including cryptocurrencies. This revision is crucial, as the existing law has remained stagnant for over 17 years, failing to incorporate the complexities introduced by cryptocurrencies like Bitcoin.
According to Andrew Fei, a partner at King & Wood Mallesons in Hong Kong, it is imperative for China to amend its AML laws to tackle the risks posed by virtual assets, especially given the evolving international standards and best practices in this domain. The Financial Action Task Force (FATF), which focuses on combating money laundering and terrorist financing, has provided detailed recommendations for the forthcoming AML law amendments.
Despite being rated as “largely compliant” with the FATF’s virtual asset-related AML recommendations, China’s ban on cryptocurrency activities has led to certain exemptions from several pertinent criteria. This revision signifies a proactive approach by the Chinese government to modernize its legal framework in line with the rapidly changing landscape of digital finance.
Hot Take: The Future of Digital Currency in China and Beyond 🚀
With Huawei’s integration of the digital yuan into its HarmonyOS NEXT and the upcoming revisions to China’s AML laws, the trajectory of digital currency in the region appears to be on a promising path. The elevation of the digital yuan’s integration into everyday technology signifies not just a technological innovation, but also a broader acceptance and utilization of digital currencies within various sectors, both domestically and internationally. As digital currencies continue to evolve, understanding their implications will be essential for users, regulators, and businesses alike.
By
By
By