China is advancing its digital yuan launch, with the negotiation of a deal with popular Chinese rideshare platform Didi Chuxing. The announcement was made in Beijing Business Today by the digital currency department of the People's Bank of China(PBoC).
According to the announcement, the Bank intends to work together with Didi Chuxing to study how digital yuan can be used in mobile applications and smart devices. The two sides hope to foster the development of an ecosystem, where state digital currencies will be used to settle different aspects of travel-related transactions.
For those who don't know, digitization has become an essential means of driving the development of China's economy. This is one of the reasons why the state is very interested in a digital currency framework, as this is a fundamental foundation in the advancement of a digital economy. Lately, the PBoC has set up a digital currency research department and has persistently accomplished new outcomes in the innovative work of state digital currency standards.
Didi Chuxing said they would work with members of the state's research institute, as well as other government departments to achieve the vision of the state. They also noted that this would be a milestone in the deployment of digital RMB, which would make it easy for financial sectors to integrate with real sectors in the digitization process.
The Chinese firm - Didi Chuxing has a rideshare platform and other travel-related businesses. It appears that the PBoC has a preference for testing the digital RMB in the transportation sector, as they had earlier conducted a pilot in the city of Suzhou with payment of state transportation subsidies.
Source: Cryptonews
