DiDi, the Chinese equivalent of Uber, is forming a task force to design and implement a trial of a Chinese Central Bank Digital Currency (CBDC) on its transportation platform.
Didi takes over the CBDC project in China
A spokesman for the Chinese mobile phone service told the media that it had entered into a strategic partnership with the People's Bank of China (PBoC) Digital Currency Research Institute in an attempt to accelerate the application of a CBDC, known as Digital Currency Electronic Payment or DCEP.
"As part of PBoC's general DCEP strategy and operational timing, DiDi's DCEP task force will design and implement DCEP pilot projects in accordance with rigorous safety, security and governance standards," said the company.
"The partnership is a milestone in DiDi's ongoing efforts to improve the interconnectivity of online and offline economic sectors in China, as the government seeks to support the development of real economy sectors with innovative financial services," added the society.
The project is already in the testing phase
DiDi is currently the dominant private transport service in China, after joining the well-known local rival in 2015 when it acquired Uber China, supported by the investments of SoftBank, Apple, Alibaba and Tencent since its establishment in 2012.
Although the details of the project are not yet clear, the pilot plan could see one of the first true applications of the Chinese digital Yuan initiative as Didi reaches a reach of over 500 million users in China, offering taxis and private cars on call, solutions automotive, two-wheeled services, logistics and deliveries.
In May, DiDi completed a $ 500 million fundraiser for his autonomous driving branch. The company was recently valued at over $ 60 billion, although U.S. information site The Information said in an October 2019 report that investors had attempted to exit at a lower valuation.
In recent months, some information has leaked that the four major Chinese state-owned commercial banks are at the center of a project being developed and tested for a portfolio application that will be used to store, send and receive the DCEP.
The test phase was also reported to be underway in four cities of China on select commercial stores such as McDonald's, Starbucks and Subway, as well as government agencies participating in the process.
Uber is a young European company that has grown very quickly, immediately conquering global markets. It is currently listed on the NYSE market with a market capitalization of $ 58,8 billion. At the time of this writing, the shares of Uber Technologies they are priced at $ 33,94.
Furthermore, it seems that Uber wants to broaden its horizons by further expanding its offer and detaching itself from transport alone. Would you like to know more? Then all you have to do is stay tuned on our pages!
