JAKARTA – The largest messaging application from China, WeChat has been integrated with the digital yuan. This means that financial transactions can be carried out on the messaging platform.
According to CryptoPotato, the new service is available in 23 regions where the digital yuan is being piloted, including Shanghai and Beijing. China's largest messenger app WeChat allows clients to facilitate transactions in digital yuan.
Users must apply for an account with WeBank Tencent before using CBDC. Additional support with the app allows for faster distribution of e-CNY to WeChat subscribers.
The messaging platform WeChat is not alone, its rival Alipay has also set its focus on digital yuan payments. Alipay itself is exploring the possibility of adopting the digital yuan in 2021.
Linghao Bao, an analyst at Consultancy Trivium China, argues that Chinese consumers are highly committed to WeChat or Alipay. Thus, it makes sense for the country's central bank to seek to collaborate with the messaging app giant to popularize its digital currency.
To date, the number of Chinese residents who have opened digital yuan wallets has reached more than 140 million. While 10 million of them are digital wallet accounts belonging to the company. The country has also allowed the use of digital yuan during the 2022 Beijing Winter Olympics.
Meanwhile, the digital yuan that has been transacted has reached more than US$315,000 or around Rp. 4.5 billion per day during the sports event. On the other hand, a number of other countries including the UK, Canada and Jamaica have announced their intention to launch a central bank digital currency (CBDC). But the efforts of the three countries are not as fast as China, which is now far ahead of them.
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