The U.S President Donald Trump has signed an executive order Tuesday that bans seven Chinese applications and the Alipay payment platforms, stating that the applications can access personal information from their clients. The executive order comes into effect in 45 days, stating that the apps are banned since they pose a threat to U.S national security.
However, U.S officials are planning to ban U.S citizens from investing in Alibaba Group, an affiliate of Tencent Holdings, and Alipay’s parent, people familiar with the matter told Dow Jones. Although the sources stated that as of now, no decision has been made while the agencies discuss the potential effect on the markets.
The executive order signed on Tuesday bans transactions utilizing QQ Wallet, CamScanner, WeChat, Tencent QQ, VMate, and Alipay and WPS Office, which is the payment platform owned by Jack Ma’s Ant Group Co, a Chinese billionaire.
The crackdown comes in front of China’s dispatch of its central bank digital currency or CBDC, which is thought to have impacted China’s crackdown on Ant Financial and other Jack Ma organizations.
Industry watchers have said the People’s Bank of China is utilizing the computerized yuan as a feature of a more extensive effort to check the development of WeChat Pay and Alipay. The dispatch of a CBDC is likewise expected to stunt Alipay’s micro-lending business and give the unbanked monetary administrations, while additionally stepping back stores for business banks.
By following Ant now and forbidding Alipay, the U.S. could be accidentally helping the Chinese government progress with its advanced cash transformation as individuals are left with no decision except for to receive its payments framework. The defense for the request is additionally inquisitive, given that a wide range of applications in the U.S. can access individuals’ private data.
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