Tencent, China’s leading tech company, has dropped a sneak peek of its new digital Yuan wallet that it plans to launch as part of the WeChat ecosystem. These developments underline China's leading role as the first major nation with a digital fiat currency.
With over 1.2 billion monthly active users, WeChat has served as an instrumental resource in China itself as well as overseas. The much anticipated launch of Tencent's digital Yuan wallet points to the fast-paced development of China’s Central Bank Digital Currency (CBDC). WeChat Pay has already added digital Yuan functionality to 14 other platforms, however, the features pale in comparison to the new Tencent wallet in development. While Tencent’s digital Yuan wallet is still in its beta testing stage, unavailable to users, rumor has it that it comes packed with extensive functionalities.
Tencent adds new functionality
Sina, a leading publication from China, shares some information about the new Tencent wallet. It notes that the applet goes further than the WeChat Pay integration, allowing users to “directly open the applet to operate by scanning the payment code of digital RMB,” as well as the hidden entrance into the wallet providing more convenience to users to help manage their accounts.
The platform’s “sweep” functionality bears similarity to a direct debit on a traditional bank account, with bank card-related features and multiple payments also being added to the platform to help give it an edge over its competitors. WeChat Pay and AliPay have a large chunk of China’s payments market and it is believed that Tencent and its new wallet could tilt the balance in its favor. The People’s Bank of China (PBoC) launched its digital yuan wallet a while ago, which garnered over 260 million users in a valiant attempt to snatch some of the market shares from the industry leaders.
Telltale signs for China’s CBDC growth
China’s CBDC has grabbed all the major headlines globally as it nears full-scale launch. Currently, the project is in its pilot stage with several testing points taking place in the major cities of Shanghai, Shenzhen and Qingdao. After making its debut during the Winter Olympics, the PBoC announced that it will be increasing the scope of the test to the newer cities.
Hosting cities to the 2022 Asian Games, including Xiamen, Fuzhou and others in the Chongqing and Tianjin municipalities, are amongst those selected for the pilot. Since the pilot stage began, total transactions have peaked above $13.6 billion. With the widening of the scope, the figures attained by the project would surpass in the coming months.
