The global adoption of bitcoin and other cryptocurrencies is taking the market to the peak of its worth and it is expected that within a decade or less than that cryptocurrency will be measured as valuable as fiat. Recently Tencent, which is a Chinese multinational conglomerate holding company whose subsidiaries specialize in various internet-related services and products, dispatched an official notice that they are asking for someone to lead a new cryptocurrency research that will be used a payment wing of the company indeed.
The team is going to be formed with the intention to use digital currencies in its payment platform. They want to establish and run cryptocurrency in such a manner that it goes with regulatory framework all time. They want to explore other possible business applications too. Reportedly the research team will support government initiatives and the new Tencent unit will work on developing the government’s pilot digital currency plan in the city of Shenzhen. The no comment came from Tencent. So the information is unclear too.
WeChat Pay, developed by Tencent, had 141.2 million visitors in 2018. Tencent made collaboration deals with Visa, Mastercard, Discover, American Express and JCB to enable overseas cardholders to link their accounts to WeChat Pay for payment and services in China. WeChat Pay is being used by those countries participating in the Chinese government’s Belt and Road Initiative. In that case Facebook’s Libra is a great challenge to WeChat Pay because Libra is expanding its area to outside countries. So reportedly China would enlarge the scope of the blockchain cross-border pilot payments platform.
The adoption of cryptocurrency as a payment wing came from the longstanding interest of Tencent, which published a whitepaper regarding blockchain and digital asset management back in 2017. Another announcement of opening a virtual bank with an eye to providing financial services leveraging blockchain technology came from the company, which already has an existing digital bank namely WeBank.