A signature of US President Donald Trump Executive order Alipay on Tuesday banned the payment platform and seven more apps linked to the Chinese, saying the apps could access personal information from their users.
Separately, U.S. officials are considering banning U.S. citizens from investing in Alibaba Group, an ally of Alipay’s parents and Altab Holdings, people familiar with the matter told Joe Jones. No decision was made when the agencies debated the potential impact on the market, sources said.
Tuesday’s executive order bans transactions using Camscanner, QQ Wallet, SHAREit, Tencent QQ, Vimet, WeChat Pay, and WPS Office and Alipay, a payment platform owned by Chinese billionaire Jack Ma’s Ant Group Co.
The crackdown comes ahead of China’s introduction of the central bank’s digital currency (CBDC), which is thought to have affected China’s own crackdown on anti-financial and other Jack Ma companies.
In October, Shanghai Ma criticized China’s financial system and its state-owned banking sector at an event, saying, “We should not use the way we operate train stations to control airports,” Ma said, adding, “We cannot control the future, including yesterday’s way. “
The mother has kept a low profile and her ant group since commenting Initial public offering Suspended by regulators.
Industry Observer Said The People’s Bank of China is using the digital yuan as part of a broader effort to curb the growth of Olivei and WeChat Pay.
The introduction of a CBDC is also expected to shut down Alipay’s microfinance business and provide continued financial services and bring back deposits for commercial banks.
China is accelerating its efforts on the CBDC front and seems to be well ahead of the United States in the development of digital currency, According to Analysts.
By following Ant now and banning Alip, the US could inadvertently help the Chinese government advance the digital currency revolution because people have no choice but to pay for it. The rationale for the order is also intriguing, given the ability to access people’s personal information in all kinds of applications, financially or otherwise, in America and elsewhere.
The executive order is effective within 45 days and the applications have been banned because of threats to U.S. national security states