Users have enormous potential! Foreign media pay China faster than digital yuan

With the addition of Chinese tech companies like Alibaba and Tencent, China is stepping up efforts to promote its digital yuan to a wider audience, according to a recent report by the US Consumer News and Business Channels website.

However, there are still issues to be resolved and one specific question remains. Are Chinese citizens using Alipay operated by Alibaba outlets and Tencent's WeChat Pay planning to start paying with digital yuan?

legal tender

The company has made great strides in the digital realm since 2014.

The so-called digital yuan is designed to replace cash and coins in circulation. It is not a cryptocurrency like Bitcoin, partly because it is controlled and provided by an intermediary bank, digital benefits that are not sponsored by a bank or an executive.

The Chinese digital yuan is a digital form of fiat currency issued by the Central Bank of China, which is still being developed by medium-sized banks in many countries around the world, but corporate money in central China is far from each other.

So far, the company has developed a pilot program of digital yuan in the form of random distribution, and tens of millions of digital renminbi yuan have been distributed to the public in some cities in China.

Chinese authorities are currently working to expand the use of the digital yuan to the general public, but have not yet set an international release date for the digital yuan.

Bao Linghao, an analyst at Triview China, said, "I think we are preparing to expand our implementation now."

application

Recently, the company announced an app that allows users to register and use digital yuan in 10 regions, including major cities such as Shanghai and Beijing.

The two main mobile payments in China are Tencent's WeChat Pay and Alipay, operated by Ant Financial, a subsidiary of Alibaba.

At the beginning of January, Tencent announced that the WeChat app would support the digital yuan, which is perhaps the main driver. With over a billion users, WeChat is an integral part of Chinese people's daily lives.

Alipay is also a digital partner of the yuan.

The potential challenge for the PBOC is to get people to download the central bank's new digital yuan app and trade via WeChat and Alipay. Therefore, the integration with WeChat is important and offers consumers great potential for the digital yuan.

Recently, e-commerce giant JD.com said it would support third-party vendors selling on its platform and start accepting digital yuan.

JD.com was one of the first digital yuan partners and has already accepted the digital yuan several times. Now we plan to further expand the cooperation.

Will people continue to use the digital yuan?

Although more and more people are still unaware of digital painting technology and other aspects of digital benefits, one of the key questions is whether people will use the digital yuan as usual. Medium-sized banks are looking to expand their use.

To use WeChat or Alipay, for example, easily connect your bank account to the app. However, to use the digital yuan, users must register for a separate app and log in to WeChat or Alipay, or use the digital yuan app.

"The biggest question we face is whether consumers will use the digital yuan," "I think consumers have no incentive to change (the current payment).

He added, "I don't see the support...Users have to download the app, sign up, and then fill their wallet. I'm not sure users will be happy doing those extra things."

Beijing Winter Olympics

China's central bank previously announced plans to use the digital yuan to compete in the Beijing Summer Olympics.

Members of the 2022 Beijing Winter Olympics will be able to use the digital yuan app. However, Paul Triolo, an expert from Eurasia Group, a US venture capital firm, said the whole digital yuan industry is not comparable to Alipay and WeChat Payments.

"Although the volume of digital yuan trading will increase during the Winter Olympics in the near future, the central bank's digital yuan trading rate will be very low compared to the current popular payment platforms WeChat Pay. and Alipay," Triolo said.

However, over time, the digital yuan will become more widely used in certain areas, such as paying certain relevant government fees.

Triolo also said, "As the Winter Olympics begin to be seen by Chinese authorities as an opportunity to highlight the use of the digital yuan in the global environment, non-Chinese citizens will not use the Winter Olympics digital portfolio.”