Didi Chuxing, the renowned ride-sharing powerhouse in China, has launched a service that incorporates the digital yuan. This initiative allows residents across 250 regions in the country to utilize their Central Bank Digital Currency (CBDC) for motorcycle rentals.
According to the Xi’an Business News Network, this initiative is spearheaded by Didi Qingjue, an affiliate of Didi Chuxing, that runs a motorcycle-sharing platform powered by an app.
Earlier, Didi Chuxing’s associated companies have introduced payment features enabling customers holding digital yuan to pay for bicycle rentals and services resembling Uber.
With this new development, those residing in the pilot areas can opt for e-CNY as a preferred payment method within the Didi Chuxing application. Additionally, they can swiftly initiate CBDC transactions on mobile widgets while booking motorcycles.
Didi positioned itself as an early adopter among private transportation entities to participate in the e-CNY initiative, initiating a bicycle-sharing pilot as early as June 2020.
The company entered into a “strategic partnership agreement” with the Digital Currency Research Institute, which is the dedicated CBDC division of the People’s Bank of China.
During their collaboration, both entities concurred to collaboratively investigate and delve into the potential application of the digital yuan within the realm of intelligent transportation.
China’s Didi Exploring Digital Yuan Pay Options
Didi articulated that its newest endeavor aims to augment adoption rates and furnish a broader array of payment alternatives for its clientele. They emphasized their commitment to “further champion the incorporation of the digital yuan within the realm of transportation.”
Historically, China’s state-operated public transit systems have been at the forefront of CBDC integration. In the initial phases, some of the maiden “real-life” e-CNY transactions were executed by government employees on public bus services.
The reach of the digital yuan has since broadened to encompass urban subway systems, railway infrastructures, and expressway toll stations. Notably, in Jinan city, the entire bus transportation network now facilitates payments via digital yuan.
Additionally, select inter-city railway systems have integrated e-CNY payment functionalities, especially in regions that recently hosted the Asian Games.
On the B2B front, Chinese financial institutions have pioneered supply chain financing solutions that leverage the digital yuan, particularly capitalizing on e-CNY’s smart contract capabilities.