China’s plans for digital currency are on the pace, and the country tries to test the concept on as many platforms as possible. The testing phases are critical before mass adoption. China’s central bank previously have chosen tech giant Didi and is now planning to test the Digital Currency Electronic Payment (DCEP) in the food delivery giant, Meituan Dianping.
Meituan is one of the most renowned food delivery services in mainland China backed by tech behemoth Tencent Holdings. The considerable user-base in Meituan’s platforms makes it a suitable choice for testing a national digital currency.
Meituan and People’s Bank of China have been working closely to discuss the details of real-world usage for DCEP, the people familiar with the matter told Bloomberg. The Sources asked for full anonymity for providing private discussions to the media. They said that the final details of this partnership are not complete yet.
China is leading the way toward national digital currencies. The Beijing government detailed plans for the DCEP last year and is now working with major tech players in the country to test the feasibility and reliability of the infrastructures.
Transportation giant, Didi, was the first significant technology firm to test the digital Yuan. Meituan will now add its 435 million users to the test phase. They manage daily transactions, worth billions of dollars daily in food delivery and online travel services. Combining the substantial transaction volume to the testing phase of the digital Yuan will show the features, challenges, and other aspects of this big project.
The familiar sources to the matter claim that PBOC’s research arm is negotiating with other Chinese tech giants like Bilibili Inc – also backed by Tencent Holdings – to join the testing phase of the digital Yuan. Bilibili is one of the most significant video stream services in China. Not PBOC and neither Meituan nor Bilibili responded to the reports.
Beijing is looking for more control over the country’s financial system, which is not easy in paper-based transactions. If the central bank succeeds in the testing phase of the CBDC, China will become the first nation to have a reliable government-backed digital currency. Some experts believe that if China succeeds in launching a full national cryptocurrency, the financial world will shift from the current U.S. dollar centric system.