Will the e-CNY overtake Alipay and WeChat pay?

China is at the forefront of implementing a digital fiat currency to replace cash and coins. The e-CNY made its international debut during the Winter Olympics. Since then more and more use cases are arising by including commercial banks and internet companies (such as Tencent’s WeBank pay and Alibaba’s MyBank) in a dual-tier system, writes Daniel Zhou, Senior Investment Analyst at Mirae Asset Global Investments.

In a recent industry insight, Zhou said that the rollout of e-CNY has been going on well on the merchant side. According to CLSA, as of December 2021, there had been 8.1 million outlets that use e-CNY and 261 million retail e-CNY wallets had been opened, representing nearly 20% of China’s population.

“However, most consumers in China are still more familiar with Alipay and WeChat pay. With more features such as ‘red pockets’ and ‘cash coupon’ being rolled out, and more promotions from banks in the future, we believe the adoption rate of e-CNY could gradually pick up,” says Zhou.

Read the full e-CNY assessment at am.miraeasset.eu.