In China, the use of cash has become a distant memory, replaced by digital payments via apps like WeChat and Alipay. This change, although rapid, has been widely accepted by the population, despite some reluctance among older generations. Discover how this phenomenon has disrupted economic habits and the growing role of tech giants in the country.
The 3 key points not to miss
- Digital payments via WeChat and Alipay have replaced cash in China.
- Older people are experiencing difficulties with this digital transition.
- The People’s Bank of China has introduced a digital yuan, but its adoption remains limited.
Transition to digital payment
In China, the use of cash has become rare, with electronic payments taking over. Apps like WeChat and Alipay now dominate the market, facilitating daily transactions. This transition has been swift and has occurred without major issues, despite the challenges faced by some older people, who find it difficult to adapt to this new technology.
For these generations, technology represents an obstacle. As demonstrated by the testimony of an octogenarian, learning these apps can be confusing, often requiring the help of younger family members for common tasks, such as ordering a taxi.
Tech giants and traditional banks
Chinese tech giants have significantly strengthened their influence thanks to this shift to digital. WeChat and Alipay not only facilitate payments: they also act as banking platforms, filling the gap left by traditional banks that struggle to adapt to this new reality.
However, this dominance is not without causing tensions with the authorities. The case of Jack Ma, founder of Alibaba, is a striking example. His criticism of regulators earned him retaliatory measures, showing the limits of the government’s tolerance towards the rise of the private sector.
The digital yuan: an innovation under surveillance
In response to these transformations, the People’s Bank of China launched its own digital yuan, seeking to maintain some control over the payment sector. Nearly 260 million accounts have been opened, but its adoption by the population remains limited. This is partly explained by privacy concerns, as this currency would allow authorities to closely monitor all users’ financial transactions.
This shift to digital raises the question of transaction anonymity, an aspect that cash naturally guarantees. The end of cash usage could thus mark the end of privacy in the financial domain, a point that fuels debates on the implications of this transition.
The European Central Bank and the digital euro
In Europe, the European Central Bank is working on a similar project with the digital euro. However, European authorities have stated that it is not about replacing cash, but complementing the payment options available to consumers, thus preserving the diversity of choices while adapting to new technological trends.
