WeChat, the largest messaging app in China and one of the most popular payment services in the country, will start subsidizing the Chinese government’s digital currency.

On January 6, 2021, Tencent announced that it would begin accepting electronic payments in RMB through its mobile wallet, WeChat Pay, according to local news reports. China has been developing the digital yuan since 2014, and it has not yet been implemented nationwide. If people start paying for goods and services using WeChat, which has over a billion users, it will give them a huge boost.

Thanks to WeChat’s huge user base and a large number of encapsulated services, it has been nicknamed the “huge app”. Users can use WeChat Pay to chat, pay bills or order food or transportation. WeChat Pay has more than 800 million monthly active users.

Linghao Bao, an analyst at consulting firm Trivium China, told CNBC: “Chinese consumers are so attached to WeChat Pay and Alipay that it is unrealistic to persuade them to switch to a new mobile payment app. So it makes sense for the central bank to work with WeChat Pay and Alipay instead of doing it alone. ”

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So far, the People’s Bank of China (PBOC) has conducted limited experiments with the digital yuan in several cities, using small amounts of the currency in commercial and consumer environments. Although there is no timetable for the nationwide rollout of the digital currency, there are indications that the People’s Bank of China (PBoC) is interested in expanding the use of the digital currency.

China has taken an important place in the development of a digital central bank currency for public use, ahead of most countries that are still in research stages. Earlier this week, the country’s central bank released a beta version of its digital yuan wallet app on Chinese iOS and Android stores.

Source: CoinTelegraph

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