China’s WeChat Pay payment platform has enabled its users to use the digital yuan. This will allow users of the platform to make their payments using China’s national digital currency.
According to Cryptonews, the People’s Bank of China (PBOC) recently increased the number of cities that conditionally support China’s national currency, the digital yuan (CNY). This puts the Guangzhou Financial and Industrial Center and other major urban centers in the project.
According to reports, WeChatPay fully supports Yuan’s digital support in all existing and new test areas. This allows users to create digital wallets in yuan on their own behalf through the WeChat Pay-Run Webank service and make payments based on China’s national digital currency.
This adoption will be a positive signal for China’s national digital currency. WeChat is run by technology giant Tencent. Weichep, along with its rival Alibaba, which is run by Alibaba, together controls 15% of China’s total payments market.
In addition, WeChat is no longer just a payment messenger, but is becoming increasingly popular in China as a digital ecosystem that offers a wide range of online and digital services. WeChatPay is the payment platform used in this ecosystem and announcing its adoption will be a major potential turning point for the digital yuan.
Many observers believe that Beijing is seeking to end the dominance of Weichat Pei and Alipi in the Chinese payments market, especially among young people, but the People’s Bank of China denies this.
Last year, Mu Changchun, director of the People’s Bank of China’s Digital Currency Research Institute, said Weichep and China’s national digital currency were radically different. He had said this:
WeChatPay and other financial infrastructure are portfolios, while the digital yuan is a means of payment. This is actually what is inside the wallet.
Read also: China’s national digital currency will be an alternative to Alipi and WeChat P
Testing this national digital currency at the Winter Olympics in February, Beijing wants to test the digital yuan globally, albeit on Chinese soil.
Six cities in Zhejiang Province, including Hangzhou, which will host the Asian Games in September this year, will be added to China’s test sites for the national digital currency due to the presence of international athletes and possibly foreign spectators.
Tianjin, Chongqing, Guangdong, Fuzhou and Xiamen have also been added to the list of test cities, but Beijing will use digital tokens after the Winter Olympics.
The publication WeChat supports payment with China’s national digital currency first appeared in Digital Currency.