China is introducing innovative Super SIM cards, developed by leading mobile operators like China Mobile since 2016, combining functionalities of digital yuan wallets, smartcards, and ID cards.
Highlighting Points
- China is introducing Super SIM cards, offering functionalities like digital yuan wallets, smartcards, and ID cards.
- China Mobile and other leading operators have been developing Super SIM cards since 2016.
- The new cards will feature enhanced authentication and security and will allow users, including students, to make offline digital yuan payments.
- The Super SIM cards utilize near-field communication (NFC) technology and can be manually fitted into existing ID cards or used in cell phones.
China’s rollout of new Super SIM cards represents a significant step in integrating multiple functionalities, such as serving as digital yuan wallets, smartcards, and ID cards, into a single technology. Developed by leading mobile operators, including China Mobile, these cards have been under development since 2016, with continuous enhancements being added.
36 Million Digital Yuan Wallets Opened in Shenzhen
The Chinese city of Shenzhen has seen a surge in the number of digital yuan wallets opened, with over 36 million wallets now in use. The city claims that more than 2.1 million merchants now accept payment in the digital yuan. pic.twitter.com/wmJSx3q7g6
— CRUX | Crypto News (@Coin_Crux) July 18, 2023
Enhanced Features and Accessibility
The Super SIM cards are set to introduce improved authentication and security functions. They are designed to serve as CBDC wallets, enabling users, including middle and high school students, to make offline digital yuan payments, a feature particularly relevant in school settings where smart ID cards are mandatory.
Users can install the new Super SIM cards into existing ID cards or cell phones, allowing them to access mobile phone functions, act as digital ID cards, and serve as CBDC wallets simultaneously. Some university students are already leveraging this technology to make payments and access campus facilities using the e-CNY system.
Future Prospects and Utility
Upcoming versions of Super SIM cards are anticipated to offer advanced identification capabilities, eliminating the need for separate ID and bank cards for activities like hotel check-ins. Commemorative cards will also feature financial-grade chips acting as rechargeable digital yuan wallets.
Leveraging NFC technology, these cards operate similarly to offline smartcards and digital wallets. The initiative aligns with China’s goals to promote its CBDC to international visitors, with thousands of digital yuan hard wallets already distributed ahead of the Asia Games.
Concluding Thoughts
The PBoC’s unveiling of solutions that allow Android users to use SIM cards as hard CBDC wallets, in partnership with telecom operators, is a strategic move to lower the threshold for CBDC use. Firms like EY anticipate that SIM-based solutions will democratize access to digital currencies, catering to diverse demographic groups including the elderly and children.
