WeChat Integrates Digital Yuan To Bolster Payments
WeChat, a popular app in China, has integrated the digital Yuan into the platform. The aim is to make payments faster and seamless for the app users. Apart from WeChat, another payment app in China, Alipay also supports the digital Yuan.
The increased growth and adoption of the crypto industry have led many countries to pursue Central Bank Digital Currencies. Three of the first countries to launch a CBDC were the Bahamas (Sand Dollars), China (digital Yuan, e-CNY)) and Nigeria (eNaira).
While other countries are in different stages of CBDC development, China has continued to pursue a wider adoption of e-CNY across its regions. The country has conducted many promotional activities, including gifting a certain amount to wallet owners and even dishing out lotteries in local communities.
Digital Yuan In WeChat To Boost Adoption
One of the usefulness of this integration is that many people who use WeChat can make payments via the app in the e-CNY. The Global Times report hinted that WeChat would add future payment scenarios and use cases. But currently, the app has a transaction limit of 2,000 Yuan, or $289, while the daily limit is 5,000 Yuan, or $720.
This integration, plus the use of Digital Yuan in Alipay, is a move to increase adoption in China. The country has made several efforts to make digital assets an everyday transaction currency on its shores. The trial programs have reached up to 15 provinces, with millions of wallets actively using the digital Yuan.
But even with the growing interest in CBDC and its benefits of ensuring security for investors, many people are still skeptical, calling it a form of slavery and a tool for the surveillance of citizens.
For instance, a Bitcoin Magazine post on Twitter hinted that China could impose an expiration date on the CBDC pushing people to spend it and not to save.
China Continues To Push For Digital Yuan Adoption
One impressive thing about the digital Yuan is that it has received massive support from the Chinese government. Besides approving its usage, many leaders in several regions have made efforts to increase its adoption.
In December 2022, Alipay announced linking to the e-CNY wallet app. The integration enables users of Alibaba’s e-commerce platforms to pay for products and services with the digital Yuan. Also, during the Spring Festival holidays, many local governments in China offered coupons for the CBDC to citizens in their regions.
Moreover, the current WeChat integration will also increase the digital Yuan (e-CNY) adoption in China. Since the app has over 1 billion users, it could lead to more interest in owning a digital Yuan wallet. There have also been some airdrop activities with the e-CNY to encourage adoption.
However, it is noteworthy that many people still have not adopted the CBDC. According to a local report, many people in Hong Kong are not interested in owning a digital Yuan wallet as only 625 residents have obtained the wallet, even with the 20% discount.
Featured image from IStock and chart from Tradingview.com
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