WeChat Pay, China’s most popular messaging service, now accepts the country’s central bank’s digital money.
WeChat Pay, China’s most popular messaging service, is expected to adopt the e-CNY soon. With over one billion users, the program can greatly increase the dissemination of the digital yuan.
WeChat is now accepting digital yuan payments
WeChat Pay, a multi-purpose messaging and mobile payment service, will begin enabling digital yuan settlements, according to a recent CNBC article. With roughly 1.2 billion active users, the company’s action is likely to boost the number of citizens using e-CNY dramatically.
WeChat’s primary Chinese competitor, Alipay, has similarly shifted its attention to digital yuan payments. Last year, the company, owned by Alibaba subsidiary Ant Group, began testing to see if it might be adopted.
According to Linghao Bao, an analyst at Trivium China consultancy, Chinese consumers are so loyal to the two businesses that they can’t be persuaded to switch to a new mobile payment app.
“So it makes sense for the central bank to team up with WeChat Pay and Alipay as opposed to doing it on its own,” he concluded.
The possible growth of CBDC usage in China comes only weeks before the Beijing Winter Olympics begins. Authorities have previously said that athletes and international tourists may utilize the financial product during the sporting event.
China’s Previous CBDC Initiative
Throughout the last few months, the People’s Bank of China has tried to promote its central bank digital currency (CBDC) on several occasions. As a result of these efforts, the institution announced in November that the number of people who have opened digital yuan wallets had surpassed 140 million.
The PBoC’s digital currency research center launched the “e-CNY (Pilot Version)” software — a mobile wallet for the Chinese CBDC – on iOS and Android stores across the country earlier this week. Local users were allowed to download it and undertake pilot testing of the digital yuan and its circulation services due to the development.
The effort began in Shanghai and then expanded to other parts of the world’s most populous country.
The feature is still in study and development, according to the institution. Only approved users may access the “e-CNY (Pilot Version)” through organizations that provide digital yuan services, including major domestic banks.