China’s internet giant Tencent launched a blockchain-based digital IOU service on its flagship product WeChat, one of the nation’s most popular apps for messaging and payments.
Fast facts
- Aside from Wechat’s existing “mini receipt” and “mini contract,” Tencent says its new IOU function would allow friends to borrow money more easily from each other, according to local media’s report. Named “Mini IOU,” it is a Customer to Customer (C2C) electronic contract. Mini IOU can also provide e-signing services for personal loan contracts.
- After users input their names, loan amount, time period for the loan and an agreed-upon interest rate, Mini IOU will automatically generate an IOU note that could directly send to another user through WeChat. After both sides sign the note electronically, the IOU will be stored on blockchain to ensure the authenticity of the debt and offer crucial evidence if any conflicts arise in the future.=
- This service is backed by Zhixin Chain, a blockchain developed by Tencent. Launched in July 2019, Zhixinchain has already been used in Chinese courts to provide evidence in copyright litigation.