The Chinese Central Bank enables digital payments with offline-SIM card-based Wallet with switched off telephones.

The Chinese Central Bank enables digital payments with offline-SIM card-based Wallet with switched off telephones.
The People’s Bank of China (PBOC) has introduced a new offline-SIM-card-based wallet solution for the digital Yuan. With this innovation, users can also pay with the digital currency with the phone switched off. This new function was developed to significantly expand the benefit and range of the CBDC payment functions.
Before that, a similar solution for smartphone users was only offered with the help of near-field communication technology (NFC), but this is not supported by all mobile phones. The new wallet solution uses hardware that is integrated in SIM cards and not only on the phones themselves.
In order to be able to make use of this innovative function, users must acquire a special “super-SIM card” from their mobile operator. After replacing your old SIM card for the Super SIM, you can open the digital Yuan app and find an option to open a SIM card-based wallet. With this wallet you can still make payments if your phone is switched off or not connected to the network.
The PBOC and its partners, including the telecommunications companies China Mobile, China Telecom and China Unicom as well as the state business banks Industrial and Commercial Bank of China and Bank of China, have announced the introduction of SIM card-based hard wallet products.
So far, the new wallet function is only available for Android users with NFC functionality. However, no announcement was made for iOS users or owners of 2G telephones. For these user groups, however, Sim-based wallets could be of greater benefit.The exact destinations of the Chinese central bank with this SIM card-based CBDC wallet have not yet been announced. However, it is assumed that the Integration of this function in future updates in the direction of wider usability for all mobile phone users could go.
Overall, this innovative SIM card-based wallet solution seems to be a promising way to make digital Yuan accessible to people who do not have modern NFC-capable smartphones. The Chinese market still includes a considerable number of users who use 2G devices, and it is likely that the PBOC will consider this target group in the further development of the digital yuan.