In what looks like the first real world application of the e-version of the yuan, ride-hailing giant Didi Chuxing has begun testing China’s digital cash as a payment method on its platform.
The SoftBank Group Corp.-backed startup said it’s working with a research wing of the People’s Bank of China on uses for the virtual legal tender dubbed Digital Currency Electronic Payment, or DCEP, which involves testing the token on its platform.
Though the news is still under wraps, shares in Chinese financial software and information security companies including Feitian Technologies Co. and Julong Co. rose by their 10% daily limits on the news. China’s government began a pilot program for its digital currency, which lives on a mobile wallet application and offers Beijing greater control of the country’s financial system, a few months ago. The initial testing was limited to four cities, with local media reporting that some of the money was distributed via transport subsidies to residents in Suzhou. Adoption by Didi, which connects half a billion Chinese commuters, would drive acceptance of China’s digital coin and widen Beijing’s global lead in government-sanctioned virtual tokens. Didi currently employs payment tools from Tencent and Alibaba-backed Ant Group, so it would appear to be a good candidate for DCEP.
