China’s leading social messaging app has reportedly enabled payments in the digital yuan (e-CNY) on its platform. The service will be available across all 23 pilot regions, including Shanghai and Beijing, where the Chinese digital currency is being trialed.
This rollout follows an earlier announcement this year from the operator that it planned to add digital yuan payment support.
The digital yuan is China’s central bank digital currency (CBDC) and is currently in a testing phase. As the country’s largest mass-market app, the messaging platform will enable residents in regions running the digital currency pilot to complete transactions using the CBDC. Integrating CBDC functionality into an app with over a billion users will likely accelerate the distribution and everyday use of the digital yuan.
To use the digital yuan via the messaging app, users will need to apply to open an account with WeBank, a Tencent-affiliated online bank.
Adoption of the Digital Yuan in China
Alongside the messaging app, Alipay—its main domestic competitor—has also announced plans to add digital yuan payments. Alipay began researching e-CNY adoption possibilities back in 2021.
Linghao Bao, an analyst at consulting firm Trivium China, argued that because both apps enjoy extremely high engagement among the majority of China’s population, the central bank will need to work with these two social and payment giants to popularize the digital yuan effectively.
China currently remains far ahead of other countries that have announced intentions to introduce CBDCs, including the United Kingdom, Jamaica, Canada, Israel, Nigeria, Kenya, and the United States.
To date, more than 140 million Chinese residents have opened digital yuan wallets, including roughly 10 million corporate accounts.