The digital yuan experiment in China continues to build momentum. Tencent has completed the development of its CBDC-capable wallet. It marks a crucial step toward letting users transact using the e-CNY currency.
The Tencent Digital Yuan Wallet
There are still many questions and uncertainties regarding China’s digital yuan experiment. The CBDC has been in development for a while and notes limited rollouts across the country. However, it is not ready for mainstream use yet, primarily due to a lack of infrastructure. Tencent throws its hat into the ring by rolling out its digital yuan wallet, dubbed the Tencent e-CNY Wallet.
For now, the wallet is still in A/B testing by a limited user group. Users can transact using the digital yuan via QR codes on WeChat. Functionality includes transferring funds, collecting payments, and accessing credit card functions. Particularly that latter aspect is intriguing, as it makes for a more streamlined and unified financial solution.
Users looking to qualify for Tencent’s wallet need to activate the WeBank feature in the e-CNY app. WeBank is Tencent’s digital banking outfit and the first big partner to provide the necessary CBDC infrastructure. The e-CNY app, issued by the People’s Bank of China, is available on Android and iOS since January 2022.
It makes sense to launch the initial support on WeChat. Together with Ant Group’s Alipay, these two payment options represent over 94% of China’s online payment industry. Therefore, incorporating the digital yuan into these entrenched solutions is crucial to enable mainstream adoption.