Popular Chinese app WeChat Pay has integrated the digital yuan app for faster payments. The integration should help boost the adoption of the central bank digital currency (CBDC).
WeChat Pay, a popular Chinese app that is used by a majority of the country, now supports the digital yuan app directly, according to local reports. The Global Times reported that WeChat Pay supports the central bank digital currency (CBDC) app.
Trials and Pilot Program Progress
Currently, users can use the app to make payments with their CBDC wallets in WeChat’s mini-programs. The app will see the addition of more use cases and payment scenarios in the future. There is a transaction limit at the moment, which is fixed at 2,000 yuan or $289. The daily limit is 5,000 yuan or $720.
This is yet another step forward by the country’s officials to expand the use of the CBDC. The country’s central bank and other financial entities have ramped up their efforts in this initiative, and China is keen on expanding the CBDC tests quickly.
So far, CBDC trial programs have covered about 15 provinces, with many tens of millions of digital yuan wallets activated. This is only the start of the process to make the service go nationwide, as there are many citizens to bring on board.
It’s not all well-received, as recent reports have indicated that China can implement expiration dates for the CBDC.
CBDC Supported by Both Alipay and WeChat
China has made a great effort to expand and accelerate the payment avenues for the digital yuan. In December 2022, Alipay announced that it had linked to the digital yuan app, offering itself up as an express payment option for Alibaba’s e-commerce platforms. This allowed users to buy products and services using the CBDC on those platforms.
By cooperating with WeChat, there is the potential for massive improvements in the digital yuan app. The former has over 1 billion users, and bringing these on board via WeChat could give the digital yuan the adoption it needs
Digital Yuan Coupons Handed Out
While there are still many more users to attract, the CBDC is still seeing growth. The Spring Festival holidays saw local governments offer citizens coupons in the form of digital yuan in a bid to boost adoption.
Other occasions have also seen China handing out digital yuan, mostly in the form of airdrops. However, the results are apparently not perfect, as one PBOC official said in February 2022 that the impact was negligible up until that point.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/wechat-pay-integrated-digital-yuan-app-fast-payments/