Expected to be released by the end of 2024, HarmonyOS Next will incorporate the “atomicity” feature, allowing for instant settlements between buyers and sellers. While specific details about this feature are yet to be disclosed, the integration of the digital yuan into the Internet of Things (IoT) transactions could revolutionize its use cases.
Reports suggest that the operating system will also support smart contracts and enable integration of artificial intelligence (AI) for seamless and instantaneous payments. However, concerns surrounding the slow adoption rate of HarmonyOS Next have surfaced due to its incompatibility with Android and Unix, potentially hindering its widespread acceptance and consequently slowing down the adoption of the digital yuan.
Currently, Android holds a significant market share of over 60% in the Chinese mobile phone market, while Apple’s iOS and Huawei’s existing Android-compatible HarmonyOS account for 14% and 13% respectively.
It is worth mentioning that in 2020, the PBOC tested a hardware wallet for the digital yuan, signaling their commitment to combat financial crimes and money laundering effectively.