Chinese Internet Giant Tencent to Launch Digital Currency Research Team

Tencent, the Chinese internet giant and owner of WeChat, is reportedly forming a team to explore possible new use cases for cryptocurrencies.

According to reports by Chinese media, Tencent issued an internal notice informing employees it was searching for someone to head a new cryptocurrency research unit, which will form part of the company's payments wing.

The new team will look at how to use digital currencies in its payments platform as well as explore other possible business applications.

The People's Bank of China is said to view Tencent as a prospective issuer for the digital yuan under development, according to reports in Quartz and CNBC. Reports suggest the new Tencent unit will work on developing the government's pilot digital currency plan in the city of Shenzhen.

Tencent has not denied the reports, but neither has it provided additional information about the research unit nor responded to Chinese media requests for comment.

It is unclear whether the team would also consider creating a new cryptocurrency, or focus on supporting applications for the new digital yuan.

Tencent has previously said Facebook's Libra project may pose a serious risk to WeChat Pay as it expands outside China.

The Chinese government is also reportedly worried about Libra becoming a private alternative to its own digital yuan initiative.

Tencent has had an active and longstanding interest in cryptocurrencies and blockchain technology.

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