Among the many popular, trusted, and most common messaging apps used today, WeChat is one of China’s most common and popular apps.
With various countries’ broad adoption of web3 technology and the crypto industry for promoting Central Bank Digital Currencies, WeChat is also taking a step in the crypto world.
The China-based popular messaging platform is set to integrate digital yuan into its features. This additional payment method will help improve the efficiency and security of users aiming to make payments through WeChat.
Before this news, China was among the top three countries to adopt Central Bank Digital Currencies (CBDC), alongside the Bahamas and Nigeria.
The Benefits That Digital Yuan Brings to WeChat Users
One of the benefits of this integration is that numerous WeChat users can make e-CNY payments via the app. Furthermore, The Global Times report implied that WeChat might offer additional future payment situations and use cases.
However, the app’s transaction limit is now capped at 2,000 Yuan, or $289, while the daily maximum is 5,000 Yuan, or $700. This connection, along with Alipay’s use of Digital Yuan, is an effort to expand acceptance in China.
Apart from this, the nation has made numerous efforts to make digital assets the currency of ordinary transactions.
Following these efforts, millions of wallets are actively using the digital Yuan, and the experimental programs have gone up to 15 provinces. Yet, many people are still suspicious, calling CBDC a sort of enslavement and a tool for surveilling residents.
Support From the Chinese Government
While some users are skeptical about introducing a digital yuan, many are indulging in its widespread adoption, rising interest, and its benefits of assuring security for investors. But how is this popular digital currency being promoted on a broader scale? The financial credit goes to the Chinese government since they show massive support for e-CNY.
Apart from the government, Alipay announced n December 2022 that it would integrate with the e-CNY wallet app. Users of Alibaba’s e-commerce sites can now pay for goods and services using the digital Yuan. Moreover, during the Spring Festival vacations, many local governments in China distributed CBDC coupons to individuals in their areas.
Furthermore, the present WeChat connection will boost digital Yuan (e-CNY) use in China. Because the app has over 1 billion users, it may increase demand for holding a digital Yuan wallet. There have also been various e-CNY airdrop efforts to encourage adoption. Even though many platforms and the community have promoted and adopted CBDC and e-digital Yuan, it is noteworthy that a large population of people have yet to adopt the digital currency, including people in Hong Kong.