Payments App Wechat Will Add Support For China’s Digital Yuan

The major payments app WeChat will provide support for China’s digital yuan as it is most popular in the mainland so let’s read more today in the cryptocurrency news below.

The payments app WeChat is the biggest messaging app in China and one of the country’s most popular payment services which announced it will provide support for the Chinese government’s digital currency, the digital yuan. Tencent announced that it will start accepting digital yuan payments in its proprietary mobile wallet WeChat Pay as per the local news reports. China has been developing a digital yuan since 2014 and has to be implemented across the nation. If people start paying for goods and services with Wechat with its 1 billion users, it will give it a major boost. WeChat’s enormous user base and services earned it the moniker of “mega-app” so the users can use WeChat App to chat, pay bills, and order food. There are more than 800 million monthly active users on the Payments app.

Linghao Bao as an analyst at consultancy firm Trivium China said:

 “Chinese consumers are so locked in WeChat Pay and Alipay, it’s not realistic to convince them 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.”

So far, the People’s Bank of China conducted plenty of tests of the digital yuan in several cities involving small quantities of the currency in commercial environments. Despite the fact that there’s no timetable for a nationwide rollout, there are some indications that the PBoC is interested in expanding the usage of digital currency. China established a huge lead in developing a central bank digital currency, for public use surpassing the majority of countries that are still in the research phases. Earlier this week, we saw the country’s central bank release a pilot version of a digital yuan wallet app on the Chinese iOS and Android stores.

As recently reported, China is in the middle of piloting a new e-CNY network and it is the first public release of it. At the start of 2021, China dominated the BTC mining industry with more than half of the new BTC were minted there and according to the stats compiled by the Cambridge Centre for Alternative Finance, the Chinese BTC mining had all but disappeared despite the ban.