Home>News>Economy>Cryptocurrency>Social Media Giant Wechat to Support China’s CBDC, Platform Expected to Boost Adoption Rate

Social Media Giant Wechat to Support China’s CBDC, Platform Expected to Boost Adoption Rate

Cryptocurrency
09.01.2022
165
Social Media Giant Wechat to Support China’s CBDC, Platform Expected to Boost Adoption Rate

China’s social media giant, Wechat has said it will support the digital yuan in a move that is expected to increase the of Chinese residents that use the central bank’s digital currency (CBDC). Wechat’s support of the digital yuan potentially avails the digital currency to the social media’s 800 million active users.

New App Provides Access to CBDC

Wechat, one of China’s biggest messaging and payment apps, is reportedly set to support the digital yuan, China’s CBDC. The addition of the CBDC to the social platform is expected to boost the adoption rate of the digital yuan.

The messaging giant’s decision to support the CBDC comes shortly after the central bank’s launch of the e-cny app that gives users in certain Chinese regions and cities access to the digital yuan.

However, as the report in the Coinrivet notes, Wechat’s announcement, as well as the inclusion of Alibaba’s Alipay in the digital currency’s ecosystem, suggests that the e-cny app alone may not achieve the central bank’s goal of getting more Chinese to use the CBDC.

Central Bank’s Reasons for Partnering Wechat and Alipay

To support this assertion, the report quotes Linghao Bao, an analyst at consultancy Trivium China who says he sees the sense in the central bank’s decision to co-opt the two internet giants. He 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.

Wechat’s support of the digital yuan adds to the social media app’s growing list of use cases which already includes a payment service, Wechat Pay. The social media giant’s addition of the CBDC to payments services also potentially gives the digital currency access to Wechat’s approximately 800 million active users.

Tags in this story

What are your thoughts on this story? Tell us what you think in the comments section below.

Social Media Giant Wechat to Support China’s CBDC, Platform Expected to Boost Adoption Rate

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Author:bitcoin

Другие новости рубрики

Актуальные новости

11.05.2022, 09:21
191
Indian central bank’s ‘informal pressure’ disrupted payments: Coinbase CEO
30.05.2022, 06:30
209
Nigerian Presidential Hopeful Says He Supports Digital Currencies but Wants the Industry Regulated
23.08.2021, 06:53
286
Does Robinhood’s 100% Plunge From Its Peak Make The Stock Attractive?
14.11.2021, 17:31
268
Bannon may not be only Trump ally indicted over Capitol attack – Schiff
21.11.2021, 04:30
265
US Sentences Man to 3 Years in Prison for Operating Unlicensed Bitcoin Exchange Business
22.09.2021, 06:00
285
Argentinian Exchange Ripio Raises $50 Million in Latest Funding Round Led by DCG
16.03.2022, 09:32
219
Crypto startup employee quits after realizing telltale signs of failure
13.05.2021, 17:00
148
Buy the Dip: Microstrategy Grabs $15 Million More Bitcoin — Now Holds 91,850 BTC in Treasury
btc
$ 24581
+0.16%
eth
$ 1991.82
+0.31%
xrp
$ 0.386818
+0.55%
busd
$ 1
+0.04%
ltc
$ 65.07
+0.87%