Ride-hailing giant Didi Chuxing - the Chinese equivalent of Uber - is exploring China's digital money on its platform as a payment tool, in what may be one of the first actual uses of the virtual version of the currency.
The SoftBank Group-backed startup disclosed on Wednesday that it is collaborating on the uses for the digital cash dubbed Digital Currency Electronic Payment with a research arm from the People's Bank of China.
The work includes testing the electronic yuan on its ride-hailing app, sources with knowledge of the program stated. Details such as when the feature will be unveiled are not yet clear, the sources who requested anonymity because the plan is private, stated.
Together, Didi and the PBOC's think tank will reportedly venture to bring the digital cash application to the former's massive transportation network, which Didi also refers to as the largest one-stop on-demand transportation platform in the world.
At present, Didi is the most superior ride-hailing mobile service in China, after its consolidation with a major local competitor in 2015 and buying Uber China, supported by investments from Apple, Tencent, SoftBank, and Alibaba since it was founded in 2012.
According to a statement, in a report by Stephen O'Neal of CoinTelegraph, under the bank's overall DCEP strategy and operation timeframe, "DiDi's DCEP taskforce will design and implement pilot DCEP projects in accordance with rigorous safety, security and governance standards."
The joint venture is a major milestone in DiDi's ongoing programs to boost the interconnectivity of online and offline economic sectors in mainland China, as the government aims to support the development of the real economy areas with innovative financial services, the company disclosed.
Didi's adoption, which links around 500 million Chinese commuters, would increase acceptance of the country's electronic token and broaden the global leadership of Beijing in digital coins authorized by its government.
Didi currently employs payment processing systems from Tencent and Alibaba-backed Ant Group, thus the integration with the virtual cash would be a viable proposition for DCEP. Beyond its fundamental ride-sharing operations, Didi is attracting grocers and merchants onto its applications - and they may also become users of the national virtual coins.
Didi also claims to have 550 million users across Australia, Asia, and Latin America. The group's services primarily include food delivery and public transportation, while its latest reported plans are to establish self-driving car subsidiaries and roll out over a million autonomous vehicles by 2030.
