Tencent, a Chinese Internet giant and the parent company of WeChat, claimed that Facebook’s Libra stablecoin would pose a threat to already existing payment systems, and to WeChat Pay and Alipay among others.
According to the Tencent blockchain whitepaper, Libra, if successfully launched, “will drive the industry’s innovation and development in user experience, service cost, technology and business model.”
WeChat Pay and its competitor, Alipay, are the two leaders in the mobile payments industry. Both of them are strongly against crypto payments being processed using their services. As COIN360 reported earlier, when Binance announced the acceptance of fiat payments through WeChat and Alipay, the companies immediately refuted that possibility.
Now, the Tencent whitepaper states that Libra would be a strong competitor for traditional digital payment systems, especially in developing countries. According to the document, Libra would quickly win the markets with underdeveloped financial infrastructure and those lacking a credible local currency.