Chinese Tech Firms Launch "Super SIM Card" for Digital Yuan Wallets

Bank of China, China Telecom, and China Unicom have joined forces to introduce a revolutionary "super SIM card" that enables seamless integration between users' mobile phones and their digital yuan wallets.

The SIM card, functioning as a hardware wallet, will initially undergo testing with the central bank digital currency (CBDC) in select pilot areas. This test will only be available to a specific group of Android phone users, but there are plans to expand its availability in the near future.

Users need only install the new SIM card provided by their mobile operators, log in to the digital renminbi app, and link it to their SIM card wallet to utilize the NFC (Near Field Communication) functionality for e-CNY payments.

Most notably, both the SIM card and the phone support NFC, meaning users can make payments using the SIM's NFC capability even when their phone is switched off. The Shenzhen Securities Times reports that users can also set a maximum payment amount without requiring a password, addressing concerns about inadvertent payments.

The storage of digital cash on the SIM card adds an extra layer of security, making it more difficult for hackers to pilfer funds since the cash is not stored in the phone's memory or storage. The intention is to enhance the safety and integrity of digital transactions.