The apex bank in China is to test the use of its national digital currency in partnership with Didi Chuxing. Didi Chuxing is the leading ride-hailing platform in the country; hence, the partnership could make it one of the first corporate users of a government-backed digital currency worldwide.
The development was revealed by Reuters in a report on July 8. The digital currency that China’s apex bank wants to test has been under development over the past five to six years, and it will soon be issued to the general public.
The bank established a research team six years ago to find out whether it is possible to launch its own digital currency towards a reduction in the costs of circulating traditional paper money and enhancing the control of policymakers over money supply.
Didi noted today that it is working with the digital currency research unit of the apex bank towards the application of the digital currency electronic payment (DCEP) on its ride hailing app. According to Didi, the partnership happened as the government seeks to support the development of the real economy sectors with innovative financial services. The aggregate number of users served by Didi is more than 550 million, said the ride-hailing company.
China is ready to become the first nation in the world to issue its own national digital currency. Reports have it that China’s apex bank accelerated the process of issuing the national digital currency. At the moment, they are testing the national digital currency in four cities in the country.
According to the claims of several experts, the digital version of yuan could be a threat to the United States Dollar’s global dominance. China is not the only country working towards the release of a national digital currency; other countries include Japan, Canada, as well as several countries in Europe.