TL; DR Breakdown
- China WeChat joins the Digital Yuan pilot program
- High court outlaws cryptocurrency transactions as unlawful monetary services
According to an announcement published on April 7, WeChat, one of China’s most popular social media platforms, will join the digital yuan pilot program.
With more than one million users and China’s most-used application, WeChat can potentially facilitate a considerable number of transactions. The app will reportedly allow its usage to grow with the aid of digital yuan.
It opens the door for further use of cryptocurrency in international trade and supply chains, with tight integration with other technologies. It may be a real help for the adoption of the digital yuan. The CBDC is already well on its way to becoming a normal part of peoples’ lives, with the expansion of the pilot program adding fuel to that.
The digital yuan pilot program was just expanded to include additional cities and will be used during the Asian Games, which are being held in Jakarta this August. It was also tested at the recent Winter Olympics. There hasn’t been much talk about how effective it was in the latter event, but its use in a showcase event indicates progress.
The digital yuan is also being tested in cross-border trade. A recent example is a deal between China and Singapore that will allow businesses in the city-state to settle transactions using the Chinese currency. This is a significant development because it’s the first time the digital yuan has been used in such a way.
According to most accounts, the digital yuan pilot project was a success. It has reportedly seen almost $14 billion in combined transaction volume since its inception, though some sources claim that certain accounts are simply set up and never used.
China’s raised ban on cryptocurrency
Since the government of China drafted a law last year against crypto mining and cryptocurrency digital yuan has found growth. With the new support from WeChat, it appears that the digital yuan is here to stay and will become a normal part of Chinese people’s lives.
The high court outlawed cryptocurrency transactions as unlawful monetary services, further enhancing the country’s negative attitude toward crypto-assets. Meanwhile, WeChat recently banned some accounts promoting NFT businesses.