Based on a recent credible report, WeChat Pay-a versatile messaging and mobile payments app-will begin supporting digital yuan blockchain solutions. The company’s move is expected to increase the number of citizens in using e-CNY rapidly as WeChat has nearly 1.2 billion active users.
WeChat’s main competitor in China, Alipay - has also focused on digital yuan solutions. Last year, the firm operated by "Alibaba affiliate Ant Group" will begin an attempt to explore the possibility of adoption.
Speaking on the matter, Linghao Bao-Analyst at Consultancy Trivium China-opined that Chinese consumers are so committed in using the products of the two companies that they cannot be persuaded to switch to new mobile payment apps.
"So it makes sense for the central bank to work with WeChat Pay and Alipay rather than doing it themselves," - Bao.
The potential expansion of China’s CBDC use will come a few weeks before the start of the Beijing Winter Olympics. Authorities have also already announced that they may allow foreign athletes and visitors to use financial products during the sporting event.
The People’s Bank of China has tried to promote its central bank’s (CBDC) digital assets several times over the past few months. Following this effort, the institution announced last November that the number of individuals who have activated yuan digital wallets reached 140 million.
Earlier this week, the PBoC digital asset research institute released the “e-CNY (Pilot Version)” app-a mobile wallet for CBDC China-on iOS and Android. The development allows local users to download and run digital yuan pilot trials and its services.
The initiative first became available in Shanghai, then it expanded to other areas in the most populous country.
The institute also reminded that the feature is still in research and development mode. “E-CNY (Pilot Version)” can only be accessed by users who meet the criteria through institutions that provide digital yuan services, such as major domestic banks.
