![]() ![]() Sign-up is possible through seven traditional commercial banks and two online banks, all Chinese: Zhangjiakou, Hebei Province (one of the locations for the Winter Olympics). ![]() Shortly after the launch of the app, the Tencent-owned messaging app and payment platform WeChat announced that it would begin allowing users to select the digital yuan as a payment option to pay for services. The head-to-head rivalry between Tencent and Alibaba dates back to July, when Alibaba blocked application programming interface (API). With over 1.2 billion users, of which around 750 million are active on a daily basis, this development could give significant exposure to the digital yuan, which some analysts say faces stiff competition from other online payment platforms – including WeChat itself. The digital yuan, officially called the Digital Currency Electronic Payment (DC/EP), is a digitised version of China’s legal currency, the renminbi (RMB). It is issued by China’s central bank, the People’s Bank of China (PBOC). Tencent is uses its blockchain platform to automate employee expense data transmission from WeChat Pay to employers for faster corporate travel reimbursement. It is designed mainly to be used for high-frequency, small-scale retail purchases and transactions. A logo of payment service provided by Tencents WeChat is seen in Beijing on April 26, 2023. Key Points Chinese giant Tencent is exploring whether regulators will require it to create a financial holding company to house is fintech business. The digital yuan forms part of the monetary base (M0) of the country, which means the digital currency makes up a portion of the ‘cash’ that is in circulation. ![]() It is important to note that the e-CNY is not a form of cryptocurrency, since it does not operate based on blockchain and is issued by a central bank (i.e., it is not decentralised like other forms of cryptocurrency). Photo/Xinhua Chinas third-party payment platform WeChat Pay, run by Chinese tech giant Tencent, was. The PBOC first began trialling the digital yuan app in April 2020 when it launched internal testing in four cities. A plate of 'Wechat Pay' is shown at the counter of a store in Bangkok, Thailand, May 5, 2017. WeChat is China’s most popular messaging app with a monthly user base of more than 1 billion people. This pilot programme has since gradually been expanded through invites and cash incentives to eventually reach 140 million registered users by October 2021, according to the PBOC. A WeChat messaging app logo is seen on an smartphone. Regulators reportedly believe that Tencents current payments license owned by its TenPay unit, the backend provider of wallet services on WeChat and QQ, as insufficient to cover WeChat Pays. In May 2021 it was also announced that the e-CNY would be integrated into Alibaba’s services ecosystem. ![]()
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