WeChat Pay, one of China’s most popular apps, has now integrated the digital yuan app for faster and more convenient payments. This integration is expected to help drive the adoption of the central bank digital currency (CBDC) in the country.
As reported by the Global Times, WeChat Pay now directly supports the digital yuan app, allowing users to make payments with their CBDC wallets in WeChat’s mini-programs.
While there is currently a transaction limit of 2,000 yuan or $289, the daily limit is set at 5,000 yuan or $720. However, the app is expected to add more use cases and payment scenarios in the future.
The integration with WeChat Pay is just one of the many steps taken by China’s officials to expand the use of CBDC.
The country’s central bank and other financial entities have ramped up their efforts to accelerate CBDC tests and trials, which have already covered about 15 provinces, with tens of millions of digital yuan wallets activated.
Although the digital yuan has received positive feedback from many users, some reports suggest that China may implement expiration dates for CBDC.
However, China is still determined to expand and accelerate the payment avenues for digital yuan, especially by partnering with popular apps like WeChat.
In December 2022, Alipay announced that it had linked to the digital yuan app, offering itself as an express payment option for Alibaba’s e-commerce platforms.
This allowed users to buy products and services using the CBDC on those platforms. Now, with WeChat Pay joining the CBDC initiative, there is even more potential for massive improvements in the digital yuan app. With over 1 billion users, WeChat could help drive the adoption of CBDC and bring more citizens on board.