Fintech Innovation in China
Author(s)
Cusumano, Michael
Date Issued
September 23, 2025
Journal
Communications of the ACM
Publisher
ACM
Citation
Michael A. Cusumano. 2025. Fintech Innovation in China. Commun. ACM 68, 10 (October 2025), 18–21.
Version
Final published version
Abstract
This column discusses innovation in payment platforms in China and what Western central banks and governments might learn. Private Chinese companies led in the introduction of the mobile payment systems Alipay and WeChat Pay, using QR codes, and most transactions in the country are now digital. China also has banned private crypto currencies and stablecoins and introduced a public digital currency and payment system using crypto technology. However, it has been very difficult to get users to switch to the new central bank digital currency, despite aggressive promotions, subsidies, and mandates. China's experience suggests that other central banks around the world will have difficulty introducing their own digital currencies and competing with private stablecoins and cryptocurrencies as well as other private digital payment platforms.
MIT Department
Sloan School of Management
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1145/3750721
