September 26, 2020

Tencent: Libra poses a serious threat to Alipay and WeChat

Representatives of the Chinese Internet giant Tencent and the WeChat messenger said that the Libra project from Facebook poses a serious threat to the existing digital payment systems on the market. It is reported by CoinDesk.

In a recently published paper, Tencent calledinitiative from the largest social network “bold and radical”, but at the same time “expedient and rational”. The company is confident that the Libra coin will quickly gain a significant market share in countries with unstable national currency and undeveloped banking infrastructure. At the same time, Chinese companies are unlikely to compete on equal terms with the new means of payment.

“Any Internet company with a relatively developed payment system like WeChat Pay and Alipay will be at risk if this stablecoin is launched.", - the document says.

Note that about 1 billion people actively use the Tencent WeChat messenger. Payment systems WeChat Pay and Alipay from the Alibaba Group are the largest in the country.

Recall that China is developing a national digital currency. The People's Bank of China is actively involved in it.

Also earlier, ForkLog reported that billingAlipay system intends to block any payments related to Bitcoin and other cryptocurrencies. Earlier this year, WeChat promised to remove the profiles of merchants involved in bitcoin trading using the messenger system.