Tencent owns China’s most popular messaging app, which has over 1 billion users and is also one of the country’s most popular payment systems. 

WeChat, dubbed a “super app,” allows users to access a variety of services in addition to messaging, including WeChat Pay, which has over 800 million monthly active users. 

Such a broad user base could help the sovereign digital money gain traction.

The use of the digital yuan is growing

Although China has been working on the digital yuan since 2014, it has so far only allowed lottery winners in a few places to test the technology. 

The People’s Bank of China, which issues the CBDC, now appears to be looking to increase the use of the digital yuan, despite the lack of an official rollout date.

The PBOC introduced a digital yuan app in select regions and cities earlier this week, which is now available to anybody living in those places. 

In addition to WeChat Pay, Alipay, which is owned by the Ant Group, began testing digital yuan payments last year. 

Although they compete with the PBOC’s own digital yuan app, the two companies dominate mobile payments in China and would undoubtedly help the digital currency gain traction.

A collaboration makes more sense

“It’s not practical to convince Chinese consumers to switch to a new mobile payment service since they’re so hooked into WeChat Pay and Alipay,” consultancy Trivium China analyst Linghao Bao told CNBC. 

As a result, it makes sense for the central bank to collaborate with WeChat Pay and Alipay rather than doing it alone.

China appears to be set to expand the scope of the digital currency’s use beyond consumer uses. 

For the first time in 20 years, casino operators in Macau will have to renew their licenses. 

China’s officials are likely to take advantage of the situation by compelling casinos to accept the use of the digital yuan for testing purposes.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/wechat-to-start-supporting-the-digital-yuan/