The shared ride application Didi Chuxing was chosen to test the digital yuan. The news was released on the company's website on Wednesday, July 8.
Didi signed an agreement with the People's Bank of China Digital Currency Research Institute (PBOC). No further details were revealed on the deal or when the tests will begin.
"DCEP will become an essential infrastructure of the digital economy," said Didi, adding that he will work with the central bank to "promote the integration of the digital economy into the real economy".
Taking the digital yuan to the real world
Didi has a huge base, serving more than 550 million users. In 2016, the app acquired Uber's business (NYSE: UBER ) in China. In this way, the partnership could represent a true foray of the digital yuan in the real world.
Didi reportedly sought out the Agricultural Bank of China last year, according to the Caixin portal. The company's idea was to test a digital currency in the city of Xiong'an. Therefore, the application would have the experience and reach necessary for the enterprise.
In addition, the app already works with Alipay and WeChat Pay on its platform, making it a viable testing option for the digital yuan.
The race for digital yuan testing
PBOC started developing the digital yuan in 2014, but the process has accelerated in recent months. The central bank partnered with seven state-owned companies to test the currency.
Other companies have sought partnerships to test the Chinese currency. Among them are ByteDance, owner of TikTok and the Chinese collective purchasing website Meituan-Dianping, among others.
Large banks also seek to participate in the testing system, such as the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China and the Construction Bank of China.
In addition to Chinese companies, giants like Starbucks, McDonald's and Subway were also trying to test the digital currency
