WeChat, owned by Tencent Holdings Ltd, announced on Wednesday it will allow the use of the digital renminbi, also known as e-CNY, for transactions in video accounts and small apps that offer services such as travel, restaurants and retail.
The digital renminbi pilot programme seems to be moving forward, as the municipal government of Changshu in Jiangsu province recently announced that the salaries and wages of civil servants and employees of state-owned enterprises will be paid only in digital renminbi from May.
The digital renminbi is a central bank digital currency (#CBDC) issued by the People’s Bank of China.
With over one billion active users, WeChat is one of the most popular social media and messaging apps in China. The integration of digital renminbi payments into WeChat is expected to further increase the adoption of the digital currency in China.
While the digital renminbi offers several advantages, including greater efficiency and transparency, there are also concerns about privacy and security, especially with regard to possible increased government surveillance.
The People’s Bank of China keeps records of all transactions made with the digital renminbi, which has raised concerns among some observers.
