Tencent’s Ongoing Digital Yuan Test Programme & E-CNY Expansion

Tencent’s Ongoing Digital Yuan Test Programme & E-CNY Expansion

The Digital Yuan is a Central Bank Digital Currency (CBDC) or Digital Fiat Currency issued by the People’s Bank of China (PBOC). Although it is broadly misconceived to be similar to Bitcoin, the Digital Yuan is most certainly NOT a cryptocurrency.

The Digital Renminbi will circulate as M0 alongside physical Renminbi until E-CNY is fully adopted across the People’s Republic of China (PRC).

How Everyday Chinese are Embracing E-CNY

Is Digital Yuan Use Expanding?

The Digital Renminbi was introduced in 11 pilot cities ahead of the 2022 Beijing Winter Olympics last January including Shanghai, Shenzhen, and several Olympic venues.
As of May, 12 more cities have been introduced to the E-CNY.

Zhangjiakou, Tianjin municipality, Chongqing municipality, Guangzhou in Guangdong Province, Fuzhou, Xiamen, 6 cities in Zhejiang Province which will be hosting the 2022 Asian Games.

What’s New With Tencent’s Ongoing Digital Yuan Programme?

As part of E-CNY A/B testing, users can now make Digital Yuan payments through QR codes on WeChat.

The company introduced Digital Yuan transactions to its WeChat app in January 2022.

Consumers must first download the Digital Yuan App. Then, they must open an E-CNY wallet with WeBank, Tencent’s Digital Banking arm. The WeBank wallet must then be linked to their WeChat account to enable Digital Yuan payments.

Meituan’s Offline E-CNY Payments

Meituan is China’s largest on-demand food delivery provider. Around 19% of Meituan is owned by Tencent.

A while back, Meituan introduced Digital Yuan payments for its online food deliveries.
In 2022, Meituan expanded its E-CNY payment facility for more than 200 different types of offline merchants.

Brick-and-mortar businesses such as hotels, restaurants, grocery stores, and cinemas will now be able to accept payments in Digital Yuan through the Meituan App.

The Digital Yuan is Becoming More Widely Used

The decision taken by the PBOC to roll out Digital Yuan payments through widely used apps across China such as WeChat and Meituan, makes E-CNY more accessible and familiar to Chinese citizens much faster.
Tencent’s extensive testing and roll out of Digital Yuan payments across its platforms helps gather vital information for enhancing users’ experience with E-CNY.

Citizens’ response to varied A/B tests will help PBOC design the most efficient Digital Yuan payment method.

Further Digital Yuan tests and city rollouts are en route to establishing the E-CNY as the preferred payment method across China.

What Exactly is The Digital Yuan?

Leave a Reply

Your email address will not be published. Required fields are marked *