China’s upcoming digital currency is being tested in a car-sharing agency with 500 million users. The digital yuan will be seen in a test pilot on the App Didi Chuxing car-sharing agency. The pilot project will lay the foundation for a broader introduction of the digital yuan project.
Digital Yuan tested at giant car-sharing agency
According to Bloomberg, China’s upcoming digital currency will be seen in a test pilot on Didi Chuxing, the car pooling giant that Bloomberg often refers to as the Uber of China.
Didi will test the digital yuan as a payment system on his car fleet equipped with apps. Currently, global credit cards such as Visa and Mastercard are being used, as well as the local providers WeChat Pay and AliPay for payments within the soft bank-supported start-up.
Central People’s Bank of China involved
Didi officials said they are working with the Central People’s Bank of China (PBoC) on the project. One item on the research agenda is to test the digital yuan as a means of payment for travel.
Positive test results of the Didi pilot project will form the basis for a broader introduction of the ambitious digital yuan project. Earlier this year, a Chinese official said it was hoped to be launched before the 2022 Winter Olympics in Beijing.
The carpooling agency boasts 30 million daily commuters and is said to have over 550 million registered users – almost 40% of China’s 1.4 billion inhabitants.
The use of the tokens will not be limited to taxi drivers. Didi launched its own DiDi-Food app in early 2018, which will be included in the study. The carpooling company plans to launch a project for everyday services such as laundry and food shopping.
China’s Blockchain Push
The Didi process will be one of the first commercial applications of the blockchain in Beijing. So far, the Chinese capital has lagged behind the cities of Hangzhou and Hainan in terms of government-supported block chain projects. These two cities have the status of a Future Science Zone and a blockchain island respectively. Chinese plans are to significantly advance blockchain and digital currency in both regions.
China is also leading the way among Bitcoin asic mining manufacturers. Another IPO is planned here.
Blockchain included in 5-year plan
Blockchain technology occupies a prominent position in China’s five-year plan and so far the country has not deviated from its efforts. This week the local publication Weixin confirmed that the first provincial backbone for a live district blockchain was put into operation in Zhejiang last weekend. More than 135 public nodes are now active. In the coming months, the installation is to be carried out gradually in 100 more cities.
China is always one step ahead in the global race to introduce and implement the blockchain.