China wants to spread the use of its digital currency through DailyCoin’s WeChat

• The digital yuan will be included in China’s largest messaging application services, reaching more than a billion users.
• China wants its digital currency (CBDC) to circulate across the country before holding its Winter Olympics in its capital.
• WeChat and Alipay mobile payment applications ensure the early implementation of digital currency across the country to the People’s Bank of China.

With the addition of WEChat, China’s largest payment service and messaging app, the government hopes to accelerate the launch of the digital yuan across the country. If Chinese consumers start using the Tencent app to make payments, digital currency will gain a big boost and its use can be expanded.

Since 2014, Chinese authorities have been developing digital yuan (e-CNY), which has not yet been implemented nationwide. However, with WeChat securing more than 1 billion users, digital currency is likely to become universal.

Although WeChat is mostly used in China, it is very important for the Asian giant to accelerate the use of digital yuan. Among its plans is to create a strong economy that feeds mainly on Chinese consumers. Thus, China intends to reduce its dependence on the Western market.

The so-called “super application” that offers many services has deep roots in China; not only for its messaging features, but also for the massive use of making payments through WeChat Pay, ordering taxis, and buying food with home delivery.

WeChat Pay, a WeChat digital wallet and mobile payment service with more than 800 million active users every month, allows Chinese consumers to pay for a variety of things using their phone. The service broadcasts a barcode that is read in physical stores, but can also be used for online shopping.

Conversely

• The introduction of WeChat is part of a test process with the digital yuan being carried out by the People’s Bank of China (PBOC).
• So far, only a few cities in the country have been selected to use this central bank currency (CNCB), mainly through national lotteries.
• The selected cities include the capitals of Shenzhen, Suzhou, Chengdu and Beijing, where the People’s Bank of China has given some residents 200 digital yuan prizes to spend as they wish.

With these moves, it is clear that the Chinese issuing institute is seeking to spread its digital currency across the country. Although no date has been set for the use of digital yuan nationwide.

The launch of the digital payment app last week will allow all residents of the 10 selected geographic areas to use digital yuan. Download the app and register to use digital currency. Previously, the app was available to some users by prior invitation.

Why You Should Care

• Chinese WeChat and Alipay applications run by Ant Group Alibaba (NYSE 🙂 subsidiary, dominated by mobile payment services.
• Alipay has also been testing digital yuan payments since last year. The two apps will compete against each other for digital yuan use.
• The Chinese government wants its digital currency to be very advanced at this year’s Beijing Winter Olympics.

By adding e-CNY to WeChat and Alipay, the PBOC is making sure that most Chinese will soon be using their digital currency.

“Chinese consumers are so caught up in WeChat Pay and Alipay that it’s unrealistic to persuade them to switch to a new mobile payment app,” Linghao Bao Trivium China consulting analyst told CNBC.

“So it makes more sense for the central bank to merge with WeChat Pay and Alipay alone,” he added.

MAGAZINE WOMAN

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