<![CDATA[<figure class="image"><img src="https://cimg.co/news/125687/331845/adobestock-630570663-edit.jpeg" alt="The Tencent logo on a mobile phone screen against the background of a Chinese flag." srcset="https://cimg.co/news/125687/331845/responsive-images/adobestock-630570663-edit___media_library_original_1500_999.jpeg 1500w, https://cimg.co/news/125687/331845/responsive-images/adobestock-630570663-edit___media_library_original_1200_799.jpeg 1200w, https://cimg.co/news/125687/331845/responsive-images/adobestock-630570663-edit___media_library_original_900_599.jpeg 900w, https://cimg.co/news/125687/331845/responsive-images/adobestock-630570663-edit___media_library_original_720_480.jpeg 720w, https://cimg.co/news/125687/331845/responsive-images/adobestock-630570663-edit___media_library_original_600_400.jpeg 600w, https://cimg.co/news/125687/331845/responsive-images/adobestock-630570663-edit___media_library_original_300_200.jpeg 300w" width="1500" class="content-img"><figcaption>Source: ShinoStock/Adobe</figcaption></figure><a href="https://cryptonews.com/tags/china">China</a>&rsquo;s Tencent, the operator of the WeChat and WeChat Pay platforms, will join central bank-led <a href="https://cryptonews.com/tags/digital-yuan">digital yuan</a> and <a href="https://cryptonews.com/tags/CBDC">CBDC</a> interoperability pilots.WeChatPay, along with its rival Alipay, has cornered some 15% of the Chinese payments market.But in recent years, Tencent has moved to align with the People&rsquo;s Bank of China (PBoC)&rsquo;s CBDC adoption drive.Per JRJ, via <a href="https://stock.stockstar.com/IG2023092700009306.shtml" rel="nofollow">Stockstar</a>, Tencent will work alongside the PBoC&rsquo;s Digital Currency Research Institute on the &ldquo;multilateral central bank digital currency bridge project,&rdquo; also known as Project mBridge.The project itself is a multinational effort that involves not only the PBoC, but also <a href="https://cryptonews.com/news/bis-claims-cbdc-interoperability-victory-while-us-congressman-bids-block-digital-usd.htm">the Bank for International Settlements (BIS)</a>, as well as the central banks of Hong Kong and the United Arab Emirates.In 2022, the prototype mBridge platform conducted &ldquo;real-value transactions&rdquo; between 20 commercial banks in four of the group&rsquo;s territories.<figure class="image"><img alt="A customer uses a wearable offline &ldquo;hard&rdquo; digital yuan (CBDC) wallet to pay in a store." src="https://cimg.co/news/125687/331846/ecny-27-1.jpg" srcset="https://cimg.co/news/125687/331846/responsive-images/ecny-27-1___media_library_original_1126_757.jpg 1126w, https://cimg.co/news/125687/331846/responsive-images/ecny-27-1___media_library_original_900_605.jpg 900w, https://cimg.co/news/125687/331846/responsive-images/ecny-27-1___media_library_original_720_484.jpg 720w, https://cimg.co/news/125687/331846/responsive-images/ecny-27-1___media_library_original_600_403.jpg 600w, https://cimg.co/news/125687/331846/responsive-images/ecny-27-1___media_library_original_300_202.jpg 300w" width="1126" class="content-img"><figcaption>A customer uses a wearable offline &ldquo;hard&rdquo; digital yuan (CBDC) wallet to pay in a store. (Source: ICBC/Weibo/Screenshot)</figcaption></figure>Tencent began working with the PBoC on CBDC technology back in 2018.But observers have pointed out that WeChat Pay and the PBoC&rsquo;s coin will likely need to compete with one another in the payment sphere.While WeChat Pay and Alipay are in widespread usage, the digital yuan still only represents a small fraction of the Chinese payments market.The PBoC has repeatedly insisted that the digital yuan and private-sector alternatives like WeChat Pay will eventually complement one another.Early last year, WeChat Pay added an <a href="https://cryptonews.com/news/wechat-pay-interoperability-another-key-breakthrough-for-digital-yuan-pilot.htm">initial raft of electronic payments-CBDC interoperability options to its platform</a>.In March this year, a PBoC digital yuan update allowed Tencent users to make WeChat Pay payments from the bank&rsquo;s official app.Tencent, meanwhile, <a href="https://cryptonews.com/news/chinas-wechat-to-allow-more-in-app-cbdc-payments-digital-yuan-pilot-accelerates.htm">updated its own apps in April</a> to allow users to make e-CNY payments from a range of WeChat platforms, including mini-programs, applets, and video accounts.<figure class="image"><img alt="A customer uses a commemorative Asian Games-themed digital yuan (CBDC) smartcard-type wallet to pay in a store." src="https://cimg.co/news/125687/331847/ecny-27.jpg" srcset="https://cimg.co/news/125687/331847/responsive-images/ecny-27___media_library_original_1384_766.jpg 1384w, https://cimg.co/news/125687/331847/responsive-images/ecny-27___media_library_original_1200_664.jpg 1200w, https://cimg.co/news/125687/331847/responsive-images/ecny-27___media_library_original_900_498.jpg 900w, https://cimg.co/news/125687/331847/responsive-images/ecny-27___media_library_original_720_398.jpg 720w, https://cimg.co/news/125687/331847/responsive-images/ecny-27___media_library_original_600_332.jpg 600w, https://cimg.co/news/125687/331847/responsive-images/ecny-27___media_library_original_300_166.jpg 300w" width="1384" class="content-img"><figcaption>A customer uses a commemorative Asian Games-themed digital yuan (CBDC) smartcard-type wallet to pay in a store. (Source: ICBC/Weibo/Screenshot)</figcaption></figure><h2 id="tencent-joins-chinese-cbdc-e-cny-interoperability-drive">Tencent Joins Chinese CBDC, e-CNY &lsquo;Interoperability&rsquo; Drive</h2>Tencent will reportedly become part of the &ldquo;first batch&rdquo; of Chinese private-sector firms to join the mBridge project.This may suggest that other Chinese tech giants could also seek to join the project at a later date.The PBoC has begun paying more attention to CBDC interoperability and cross-border digital yuan use cases of late.Earlier this month, the bank updated its app to <a href="https://cryptonews.com/news/foreign-travelers-can-now-use-chinas-digital-yuan-app.htm">allow overseas visitors to open digital yuan wallets on their mobiles</a>.The move coincides with the Asian Games, now underway in Hangzhou &ndash; a major international showcase for the coin.The bank is also conducting <a href="https://cryptonews.com/news/digital-yuan-spurs-rise-in-mainland-china-hong-kong-cross-border-payments.htm">&ldquo;cross-border&rdquo; trials with Hong Kong and Macau</a>.And Russian politicians have <a href="https://cryptonews.com/news/top-lawmaker-suggests-china-russias-cbdcs-are-compatible.htm">suggested that the digital ruble could become compatible with the PBoC&rsquo;s coin</a>.The pilot will see Tencent use the multilateral CBDC &ldquo;bridge&rdquo; to &ldquo;further enhance its cross-border payment service capabilities.&rdquo;The firm also plans to use the CBDC bridge in the &ldquo;financing&rdquo; space.Tencent also wants to explore &ldquo;multi-currency fund management&rdquo; options for &ldquo;small and medium-sized enterprises.&rdquo;The BIS, meanwhile, has started working with a range of central banks and private sector financial firms on CBDC interoperability solutions.
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Chinese Tech Giant Tencent Joins CBDC Interoperability Pilot

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