China’s WeChat app will support digital yuan payments when it joins the pilot program. The program for CBDCs has recently expanded to include 11 additional cities.
WeChat to support digital yuan pilot payment functions
Popular Chinese social media app WeChat will join a digital yuan pilot program, according to an announcement published on April 7. Support for digital currency on WeChat for the first time was revealed in early 2022, but with the recent announcement, it’s clear the effort is taking off.
WeChat has more than a billion users and is one of China’s most widely used apps. With support for the digital yuan, the latter could increase its usage. The app has become a hub for various services, including ordering food and finding taxis.
With tight integration with other services, it could be a real boon for digital yuan adoption. CBDCs have been and are well on their way to becoming an everyday phenomenon, with pilot program expansion ever-increasing.
The digital yuan pilot program was recently expanded to include more cities and used during the upcoming Asian Games. It was also tested during the recent Winter Olympics. Not much is known about its effectiveness in a later event, but its willingness to use it in a showcase event indicates progress.
By most accounts, the test of the digital yuan was successful. Since its launch, it has reached nearly $14 billion in total trading volume, although some reports say some accounts are just opened and unused.
While the digital yuan program is growing, the cryptocurrency market is waning. The Chinese government is strict about using cryptocurrencies and has been cracking down since the enactment of the law last year. The government has banned the holding and trading of cryptocurrencies and mining.
WeChat recently suspended NFT-linked accounts, following the government’s stance on cryptocurrencies. The Supreme Court has ruled that crypto exchanges are illegal fundraising, which adds to the growing negative sentiment towards the crypto asset class in the country.
It has even offered cash prizes in an attempt to restrain the market. While this is happening, it is looking to use blockchain technology to improve its economy.
Read more:
- The People’s Bank Of China Expanded Its Digital Yuan Pilot Program To 11 More Cities, Including In Hangzhou
- Hangzhou Company Signed Deals With Major Commercial Banks To Facilitate The Digital Yuan