Tencent’s WeChat, which owns the largest messaging app and one of the largest payments services in China, has announced that it will start supporting the government’s digital sovereign currency.
China has been working on the digital yuan since 2014 and has not yet launched it at the state level, but the move by WeChat, which has more than 1 billion users, to support the digital currency may provide it with a strong boost if people start using it to pay.
WeChat may not be well known among users outside of China, but it is ubiquitous in the world’s second largest economy, and is often considered a “super app” due to the many services within its application, where people can do messaging and complete payments through WeChat Pay, in addition to paying taxes and ordering food, the application can also be used for in-store or online purchases, knowing that WeChat has 800 million active daily users.
So far, the People’s Bank of China, which launched the digital yuan, or e-CNY, has conducted limited trials in certain cities via lotteries, with the central bank giving small portions of the currency to some citizens, but there are now signs that the bank is seeking to expand the use of the digital yuan, although no actual date has been set for the nationwide rollout, given that a few days ago the bank launched a digital yuan application for users in some regions and cities in China. Read more [China Launches An App For Its Own Cryptocurrency].