PBoC Advances Cross-Border QR Code Payment Pilot with Ant Group Participation

PBoC's Deputy Governor highlights financial security concerns linked to increased cross-border payments and the illicit use of virtual currencies in fund transfers.

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Summary

People's Bank of China Vice Governor Lu Lei announced that Alipay and Ant International are participating in a pilot for a unified cross-border QR code payment system. He warned of systemic risks, including money laundering and terrorism financing, arising from increased cross-border capital flows. Lu also highlighted concerns over the use of cryptocurrencies and underground banks in illegal fund transfers, posing challenges to China's forex management and financial security.

Terms & Concepts
  • Cross-Border QR Code Payments: A payment method enabling users to make transactions across countries by scanning a QR code, integrated into a unified system for efficiency and convenience.
  • Virtual Currencies: Digital or virtual forms of money, such as cryptocurrencies, which can be used for cross-border fund transfers but may also be exploited for illicit activities.
  • Forex Management: The regulation and oversight of a country's foreign exchange transactions to maintain currency stability and financial security.