CBDC is now accessible via a new app.
Wechat, one of China’s most popular messaging and payment applications, is planning to embrace China’s CBDC, the digital yuan. The integration of the CBDC to the social platform is intended to increase the digital yuan’s adoption rate.
The messaging giant’s move to back the CBDC comes just days after the central bank launched the e-cny app, allowing users in specific Chinese provinces and cities to utilize the digital yuan.
However, as noted in the Coinrivet post, Wechat’s statement and Alibaba’s Alipay’s involvement in the digital currency’s ecosystem imply that the e-cny app alone may not be enough to accomplish the central bank’s aim of increasing CBDC use in China.
Reasons for the Central Bank’s Partnership with Wechat and Alipay
The newspaper cites Linghao Bao, an analyst at consultancy Trivium China, who believes the central bank’s intention to co-opt the two internet behemoths makes sense. According to him, Chinese customers are so enamored by Wechat Pay and Alipay that convincing them to switch to a new mobile payment service is unrealistic. As a result, it makes sense for the central bank to collaborate with Wechat Pay and Alipay rather than doing it alone.
Wechat’s support for the digital yuan is the latest addition to the social media app’s expanding number of applications, including Wechat Pay, a payment facility. The integration of the CBDC to Wechat’s payment systems might offer cryptocurrency access to the social media giant’s 800 million active users.