According to the CBDC’s payment app and a China media article, WeChat, Chinese top social networking and payment app has introduced the nation’s central bank digital currency, or CBDC, to its payment services. The action could aid in increasing the popularity of the digital yuan, which has had a sluggish start so far.
Quick facts
- According to a report in local media on Sunday, Tencent Holdings’ WeChat Pay, which has more than 1 billion monthly active users, has joined rival Alipay, owned by Alibaba Group, in supporting the digital yuan.
- WeChat Pay now enables digital yuan payments on various applications, including those used to pay bills and place McDonald’s food orders.
- It is anticipated that direct CBDC transactions between WeChat users will follow.
- China’s most extensive third-party payment system, Alipay, owned by Ant Group, a division of Alibaba, began accepting digital yuan payments in December 2022. This allowed its customers to purchase on Taobao, China’s top online shopping site, and numerous other e-commerce apps.
- At least 26 Chinese provinces and localities are currently conducting trials of the digital yuan, commonly known as the e-CNY. Due to government-sponsored e-CNY giveaways, the token experienced an increase in transaction volumes on Chinese e-commerce platforms during the 2023 Lunar New Year shopping season.
- Analysts have previously stated that to increase adoption rates, WeChat and Alipay, two of China’s largest payment platform providers, would need to adopt the CBDC.
- The ongoing Two Sessions, or parliamentary gatherings, discuss various topics in China, including the CBDC. According to a report in local media on Sunday, Fu Xiguo, a central bank employee and National People’s Congress member, suggested granting the digital yuan the same legal standing as the actual yuan.
