In a major move to enhance digital currency accessibility, Chinese tech giant Huawei has integrated the digital yuan, China’s central bank digital currency (CBDC), into its latest operating system HarmonyOS NEXT. This integration, announced following the launch of HarmonyOS 5.0 on October 22, 2024, makes it easier for Huawei smartphone users—up to 1 billion people—to access and use the digital yuan without needing to download a separate app.
Seamless Integration for Ease of Use
With the digital yuan now built directly into HarmonyOS NEXT, users will be able to make payments, manage their wallets, and interact with financial apps directly through the operating system itself. This eliminates the need for users to download and launch a separate digital yuan app, streamlining the user experience. The digital yuan will be integrated at the system level, meaning it will function natively across Huawei devices, including smartphones, wearables, and other Internet of Things (IoT) products.
Huawei’s integration of the digital yuan is designed to increase the accessibility of China’s CBDC and facilitate its use in everyday transactions, making it easier for consumers to pay via digital currency in both physical stores and online platforms.
A Major Step for Huawei and China’s Digital Currency
The move is part of Huawei’s broader effort to develop and expand its HarmonyOS, which the company has been rolling out after facing sanctions from the US government in 2019. Following these sanctions, Huawei was banned from using Google’s Android OS, leading the company to develop HarmonyOS as a proprietary solution. While the system has been integrated into smart TVs and wearables since 2019, the recent upgrade marks a key milestone in the OS’s expansion to smartphones and tablets.
With HarmonyOS NEXT, Huawei has positioned itself as the third-most popular mobile operating system in the world, after Android and iOS. The digital yuan integration signals China’s growing push to make the digital yuan an essential part of daily life for its citizens, positioning it to compete with other global digital currencies.
Enhanced Security and Monitoring Capabilities
For the People’s Bank of China (PBoC), the integration brings enhanced security and monitoring capabilities, allowing for a more secure and seamless integration of the CBDC across various Huawei devices. This aligns with China’s broader goals of enhancing its financial infrastructure and increasing the adoption of digital currencies on both domestic and global scales.
According to reports, Huawei is not only integrating the digital yuan into smartphones but also expanding the CBDC’s reach into other areas of the Internet of Things (IoT), including chips, modules, and smart devices. This holistic approach to integration will help ensure the digital yuan is widely accessible across various device types, making it an integral part of the digital economy.
Digital Yuan’s Growing Influence in China and Beyond
The digital yuan has been gradually making its way into various sectors in China, from everyday retail to large-scale events. In addition to the Huawei integration, the digital yuan has already been used at events such as the 2024 Craft Beer Festival and the 2024 World Table Tennis Championships. The city of Beijing reported that over 22.6 million digital yuan wallets have been opened, showcasing significant public interest and adoption.
Additionally, on October 29, 2024, the International Air Transport Association (IATA) announced it would begin accepting digital currencies for payment, with the digital yuan selected as the first CBDC to be integrated. This move further cements China’s position as a leader in the global digital currency landscape. The digital yuan will be the 74th currency managed by the IATA, signaling its growing international acceptance.
Looking Ahead
With the integration of the digital yuan into HarmonyOS NEXT, Huawei is positioning itself as a key player in the digital currency revolution, contributing to China’s vision of a cashless, digital economy. The next steps will include expanding the digital yuan’s integration into other areas of Huawei’s ecosystem, including additional IoT devices and smart city infrastructure. As more users adopt HarmonyOS and the digital yuan continues to gain traction, the CBDC’s role in everyday payments and financial transactions will only grow stronger.
In conclusion, Huawei’s integration of the digital yuan into its operating system represents a significant step in the widespread adoption of China’s CBDC. By simplifying access and use, the company is making it easier for users to incorporate the digital yuan into their daily lives, and as the system expands, it is likely to become a central pillar of the country’s digital economy.
