- China’s Digital Yuan is supported by the social app WeChat.
- It signals another wave of mass adoption for the country’s virtual currency as it boasts over a billion active users.
- Users who promoted NFTs and digital collectibles were recently punished by the messaging app.
According to a report released on Thursday (April 7,2022), WeChat, the largest social media messaging application in China, has onboarded the Digital Yuan as a valid payment method. The country’s Central Bank Digital Currency (CBDC) can now be used to finish payments.
Users of the platform are required to submit an application for WeBank before they can use e-Yuan for payments.
The messaging app ‘Weixin’ was launched back in January of 2011. We now know that the platform was renamed to WeChat shortly after its release. The application is considered to be the biggest application in China since then.
A report showed that there are over a billion active users in China. According to the report, 78% of the country’s population is aged 16 to 64 years old.
It is possible that the decision to onboard China’s CBDC as a payment method could spur widespread adoption of the Digital Yuan. Businesses and corporate entities operate 10 million of the 140 million e-Yuan wallets.
Chian used the conclusion of the Beijing Winter Olympic Games to promote the use of its digital yan. The daily transactions on e- Yuan exceeded $300,000.
China Greenlights CBDCs But Not Cryptos and NFTs
Since 2020, the Asian superpower has invested a lot in the project. Efforts have supposedly paid off with adoption increasing throughout the country, but China continues to maintain a rigid approach to cryptocurrencies and NFTs.
In the country, digital assets such as Bitcoins are not allowed. Beijing is skeptical about digital collectibles as well. Authorities advised platforms to comply with updated policies after tightened regulations around NFTs.
More than a dozen accounts were suspended for promotion of NFTs and secondary sales.
Featured photo source picjumbo.com