Tencent’s New Digital Currency Venture Is A Signal For The West To Hurry Up

News, Opinion | December 26, 2019 By:

Tencent, one of the largest internet companies in China has recently started gathering a research team for digital currencies. The news broke out when the company posted a job application for the research team chief with a job description of testing and finding out various uses of digital currencies in different sectors.

The reason behind this venture is the guarantee of receiving a large share of the Chinese Central Bank Digital Currency once it’s officially out. It’s best for the corporation to know exactly where they could apply this currency in.

Considering the sheer digital presence of Tencent, it’s become ever more important for Western companies to match the blockchain developments in China in order to have at least some competitive prowess once the new project is implemented.

Many would think that Tencent’s digital currency startup is something targeting only the Chinese market, but it only takes a quick glance into what companies this corporation owns to realize that it’s a global venture.

A huge chunk of the West’s gaming industry

Note that Tencent is the owner of extremely popular video games that were first developed in the West.

Games like League of Legends, Fortnite and various other popular online multiplayer pretty much belong to this corporation.

When it comes to Riot Games, the creators of League of Legends, Tencent owns a 100% share of it, while Epic Games, the creators of Fortnite have its 40% in the hands of the Chinese giant.

Considering that these two games alone cover hundreds of millions of people worldwide, it’s pretty obvious that Tencent will try to implement the Chinese CBDC in them as much as possible.

Furthermore, consider that most of these games are popular eSports, thus directing this whole industry towards the Chinese market, thus introducing a potential monopoly in the future. But all of that can be avoided with a simple matching blockchain project from the West.

Social media presence

Another important resource that Tencent has is WeChat, which is slowly but surely becoming an all-encompassing application to live in China.

The application has pretty much every feature. Chatting, calling, paying and even file-sharing.

Some commercial cities like Shenzhen and Guangzhou operate off-of WeChat transactions as it’s the most familiar tool that Western tourists and customers can use in China.

Introduce the replacement of regular CNY with the Chinese CBDC and we get a system where billions of people around the world will start using the new digital currency.

This will give the Chinese CBDC almost the same amount of competitive prowess as the USD, thus putting the United States in a peculiar position in terms of financial dominance.

Considering that the Chinese Communist Party has a very different moral compass than the West, it’s likely that those who don’t comply with Chinese rules will lose the ability to use the CBDC, thus have themselves cut off-of a large chunk of the digital industry completely.