Didi Chuxing Technology Co., China’s leading mobile transportation firm founded by Cheng Wei in June 2012, has announced that it has joined forces with the Digital Currency Research Institute of the People’s Bank of China (PBoC). The alliance will enable Didi Chuxing to trial and explore the nation’s central bank digital currency (CBDC) called Digital Currency Electronic Payment (DCEP) in the smart mobility industry, according to a press release on July 8, 2020.
Didi to Trial DCEP
While authorities in jurisdictions such as the United States, and a host of others are yet to make significant progress in the creation of their central bank-backed digital currency, China keeps reaching impressive feats in its ques to digitize its national currency.
In the latest development, Didi Chuxing, a leading Chinese smart mobility company with a presence in Australia, Japan, Latin America, and several other parts of the world, is partnering with the Chinse government to test the country’s digital currency on its platform.
As stated in Didi’s press release, Didi Chuxing and the Digital Currency Research Institute of the People’s Bank of China have reached strategic cooperation that aims to study and explore the application of the digital renminbi in the smart mobility ecosystem.
Promoting the Growth of the Digital Economy
Didi says the digital economy has become a key driving force of the Chinses economy and as such it’s crucial to have a legal digital currency backed by the central bank, as it would help develop the economy further.
“The digital economy is now an important engine driving the high-quality development of the Chinese economy. And the legal digital currency system will no doubt become a key infrastructure in the development of the digital economy. We will cooperate with the government to promote digital RMB in the travel industry.”
With its 550 million users and a huge presence around the globe, Didi has made it clear that it plans to work under the guidance of the relevant Chinese authorities as well as the PBoC’s Digital Currency Research Institute to make the CBDC project a huge success.
Though the official launch date of China’s DCEP is yet to the announced, the nation is, however, carrying out thorough testing of its CBDC to ensure that it runs in a frictionless manner once it finally goes live.
Last April, reports surfaced that the state-run Agricultural Bank of China (ABC) has launched a mobile app for DCEP and plans to test the digital currency across four cities, including Suzhou, Chengdu, Shenzhen and Xiong’An.