Social media giant Wechat supports China's CBDC, platform is supposed to increase the acceptance rate-fintech

China's social media giant Wechat has announced that it would support the digital Yuan to increase the number of Chinese residents who use the digital currency of the central bank (CBDC). The support of the digital Yuan by Wechat may use the digital currency for the 800 million active users of social media.

New app offers access to CBDC

WeChat, one of the largest messaging and payment apps of China, is said to support the digital Yuan, China's CBDC. It is expected that the inclusion of the CBDC in the social platform will increase the acceptance rate of the digital yuan.

The decision of the messaging giant to support the CBDC falls shortly after the introduction of the e-Cny app by the central bank, which enables users in certain Chinese regions and cities.

However, since the test report In the coinrivet notes, the announcement of Wechat and the inclusion of alibabas alipay in the ecosystem of the digital Currency that the e-Cny app alone may not reach the central bank's goal of getting more Chinese to use the CBDC.

Reasons of the central bank for the partnership between Wechat and Alipay

In order to support this claim, the report Linghao Bao, a analyst of the consulting company Trivium China, quotes that he says that he sees the sense in the central bank's decision to co -opt the two internet giants. He said:

Chinese consumers are bound to Wechat Pay and Alipay that it is not realistic to convince them of switching to a new mobile payment app. Therefore, it makes sense for the central bank to join Wechat Pay and Alipay instead of doing this alone.

The support of the digital Yuan by Wechat complements the growing list of applications of the social media app, which already includes a payment service, Wechat Pay. The addition of the CBDC by the social media giant to the payment services may also offer the approximately 800 million active users of Wechat access to the digital currency.

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Terence Zimwara

Terence Zimwara is an award -winning journalist, author and author in Zimbabwe. He wrote in detail about the economic problems of some African countries and how digital currencies Africans can offer an escape route.

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