The Bank of China, one of the largest state-owned banks in China, is currently conducting trials for a novel offline payment system that connects to SIM cards. This payment method is designed specifically for the digital yuan — China’s central bank digital currency (CBDC).
The July 10 announcement revealed the bank’s partnership with telecommunication operators China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU), and its intention to commence testing the next day.