Social media giant WeChat supports China’s CBDC, the platform is expected to increase adoption rate – Fintech Bitcoin News

Chinese social media giant WeChat has stated that it will support the digital renminbi, a move that is expected to increase the use of central bank digital currency (CBDC) Chinese residents. WeChat’s support for digital renminbi may enable the 800 million active users of social media to use digital currency.

New application provides access to CBDC

According to reports, WeChat, one of China’s largest messaging and payment applications, will support China’s CBDC digital renminbi. The addition of CBDC to social platforms is expected to increase the adoption rate of digital renminbi.

Soon after the central bank launched the e-cny app, the messaging giant decided to support CBDC, an app that enables users in certain regions and cities in China to use digital renminbi.

However, as Report In Coinrivet’s notes, WeChat’s announcement and Alibaba’s Alipay are included in the digital currency ecosystem, indicating that using only the e-cny application may not achieve the central bank’s goal of allowing more Chinese people to use CBDC.

The reason why the central bank teamed up with WeChat Alipay

To support this claim, the report quoted Linghao Bao, an analyst at the consulting firm Trivium China, who said that he saw the significance of the central bank’s decision to cooperate with the two Internet giants. He said:

Chinese consumers are so addicted to WeChat Pay and Alipay, it is unrealistic to persuade them to switch to new mobile payment applications. Therefore, it makes sense for the central bank to cooperate with WeChat Pay and Alipay instead of doing it themselves.

WeChat’s support for digital renminbi adds to the growing list of use cases for social media applications, which already includes the payment service WeChat Pay. The social media giant’s addition of CBDC to its payment service may also enable the approximately 800 million active users of WeChat to use digital currency.

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Terence Zinwara

Terence Zimwara is an award-winning journalist, writer and writer in Zimbabwe. He has written a large number of articles about the economic difficulties of some African countries and how digital currencies can provide a way out for Africans.

Image Source: Shutterstock, Pixabay, Wikimedia Commons

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