If banks are doing “God’s work”, as Lloyd Blankfein, the former CEO of Goldman Sachs, has put it, then the tech giants in China are doing the banks’ work.
With the popularity of mobile payments in China, the Chinese tech giants, led by Alibaba Group Holding Ltd (NYSE: BABA) (SEHK: 9988) and Tencent Holdings Ltd (SEHK: 700), have disrupted the whole banking sector.
With their mobile wallets, one now can easily invest in money market products (similar to putting your money into saving deposits), buy insurance products (similar to banks’ bancassurance distribution model) and other fund products (similar to buying wealth management products in bank branches).
In this article, I’ll take a look at the highly secretive digital currency trial launched by the Chinese central bank, the People’s Bank of China (PBoC), in recent months.
Continue read: https://www.fool.hk/en/2020/08/12/how-is-chinas-central-bank-challenging-alibaba-and-tencent/