Home News WeChat will add China’s digital yuan support

WeChat will add China’s digital yuan support

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WeChat, China’s most popular instant messaging app and one of the country’s most widely used payment platforms, will begin to accept the Chinese government’s digital currency.

As per a local news article, Tencent revealed on Jan. 6, 2021, that it will start taking digital yuan transactions using its own digital wallet WeChat Pay.

Since 2014, China has been working on a digital yuan; although it has yet to be adopted statewide. It will gain a big boost if consumers start paying for offerings with WeChat, which has over 1 billion users.

The app has been termed as “mega-app”

WeChat may not be as well-known outside of China as WhatsApp. However, people are using it widely on the mainland. The application has been dubbed a “mega-app”; due to its massive user base and the plethora of bundled services.

WeChat Pay allows users to communicate, pay bills, and purchase meals and transportation. Moreover, WeChat Pay has nearly 800 million monthly active users.

Chinese customers are investing in WeChat Pay

The People’s Bank of China (PBoC) has performed limited trials of the digital yuan in a number of locations; using tiny amounts of the money in commercial and individual settings. Considering the absence of a schedule for a statewide deployment, there are signs that the PBoC has an interest in increasing cryptocurrency adoption.

China has taken a big part in the development of a central bank digital currency (CBDC) for public usage, outpacing the bulk of economies that are still in the planning step. The monetary authorities unveiled a prototype version of a digital yuan wallet app for Chinese iOS and Android stores earlier this week.

“Chinese customers are investing in WeChat Pay and Alipay, it’s hardly feasible to persuade them to move on a new mobile payment system”; Linghao Bao, an analyst at consultancy company Trivium China, said to CNBC. “As a result, it makes sense for the central bank to collaborate with WeChat Pay and Alipay rather than going it alone.”

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