Financial authorities should strengthen supervision of financial institutions' date accuracy to prevent risks, according to China Finance, saying if any enlightenment should be drawn from the Silicon Valley Bank crisis.
China should also let the insurance deposit system play its full role, allowing the mechanism to deal with problematic banks in a swift and orderly manner, so as to effectively prevent systematic risks, said the authors, who are from PBOC's Financial Stability Bureau and the Deposit Insurance Corp.
The authors added that China should consolidate the capital reserves for dealing with financial risks to ensure that there are sufficient resources to dispose risks in a timely manner.
In January 2023, the People’s Bank of China (PBOC) has announced the launch of a new function on its digital app, to allow Android NFC users to make offline digital payments.
The new feature allows customers of the yuan payment application to continue to make offline transactions while using the central bank digital currency (CBDC) from their Android NFC smartphone or device, even if it has no power at that specific moment.
This will work once the customers have activated the `tap and pay` feature in the application. Furthermore, the users can set a preferred payment limit on the number and the value of digital yuan payments that can be done from their personal smartphones, even when it has no more battery life or there is no internet connection available.
Customers can also find the payment-without-internet-or-power-function in the setting of the app. In order for the payments to be made, a verification code needs to be entered on the device, after the transaction exceeds the code-free quota. Even then, the payment will proceed only if it passes the system’s check.
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