The digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. created by China’s central bank came to the messaging app WeChat, which has more than a billion users.
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More than a billion people in China now have access to the Asian powerhouse’s central bank digital currency (CBDC).
The Chinese technology conglomerate, Tencent announced Thursday that it has added support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. for the digital yuan to the giant messaging platform’s wallet, WeChat .
As reported by CoinDesk which quoted the news outlet China Daily the measure allows users of WeChat use the Chinese CBDC as a payment method through a new access point in the messaging app’s payment service, WeChat Pay .
However, the media notes that in order to make use of the new payment method, users must be previously verified in the digital wallet a place where cryptocurrency users can store, send and receive digital assets. application developed by the People’s Bank of China (PBoC), called e-CNY. As reported by DiarioBitcoin China’s monetary authority has launched a new pilot version of your wallet earlier this week.
WeChat Pay users can now pay with digital yuan
Often referred to as a “ super application”. , WeChat (owned by Tencent ) is one of the largest messaging platforms in mainland China with over one billion users. In addition to messaging, the app offers a wide range of services such as digital payments through its wallet. WeChat Pay as well as transport and food delivery functions.
According to CNBC , WeChat Pay allows users to show merchants a barcode on their phone to pay for items in the store. It can also be used for online shopping. WeChat Pay has more than 800 million monthly active users.
The latest move by Tencent to provide backing for China’s sovereign digital currency could boost the adoption of the new system among the local population. . In China, applications WeChat y Alipay , administered by Ant Group a subsidiary of Alibaba dominate mobile payments, according to CNBC . Hence, the move marks a crucial step in expanding the use of digital yuan.
“ Chinese consumers are so locked into WeChat Pay and Alipay that it’s unrealistic to convince them to switch to a new mobile payment app. So it makes sense for the central bank to partner with WeChat Pay and Alipay instead of going it alone. “, dijo Linghao Bao, analista de la consultora Trivium China, a CNBC .
It is worth noting that the Chinese government had already announced in May last year that it was working together with Ant Group y Tencent for the development of your system e-CNY as reported by DiarioBitcoin . Also a Chinese official had confirmed previously that the portfolios of WeChat y Alipay would be compatible with the central bank’s digital currency.
Chinese CBDC prepares to reach Olympic Games
The news comes a few days after the BPoC released a trial version of its digital yuan wallet, which is now available to eligible users in several provinces across the country.
China has been working on its digital currency since 2014 and more recently has been expanding testing of its payment system. The testing program has been rolled out in more than ten regions of the country and the system has already been used for the lottery, in the metro and even for the payroll payment of some Chinese officials.
In fact, at least one 10% of the country’s population 1.4 billion inhabitants, has already used the CBDC, according to a November report, while there have been settled transactions worth more than USD$10 billion with the currency.
Tencent said Thursday that it will explore digital yuan payment experiences in the Olympic Village. when it opens on January 27th, according to the report by China Daily .
- China: Digital yuan to back up WeChat Pay and Alipay ‘in case something happens’
- Cornell University professor finds “pretty weak use case for a CBDC in China”
- Chinese online store JD.com accepts digital yuan payments during Singles’ Day
Sources: CoinDesk , CNBC , archive
Article versioned by Hannah Estefania Perez / DiarioBitcoin
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