China’s Digital Yuan on trial with Food Delivery Company
Crypto adoption is at its peak in the world and multiple businesses are trying to cash in on this opportunity. At a time where almost every individual knows about the potential held by cryptocurrency and its applications, they all want to get into it and many people already have. Since USA is leading the race by installing ATM’s and crypto points in merchant stores for public use, it will be logical that most of the countries will follow suit. Now with most countries looking to install a CBDC or Central Bank Digital Currency to improve economic flow, China are at the forefront of leading out what could be a major development in the Crypto World.
The ones running the Digital Yuan initiative, Peoples Bank of China (PBoC) have recently held talks with Beijing based online food seller Meituan-Dianping to trial the CBDC on their platform. There is not much information yet made available to the public about the details of the collaboration but there is confirmation that the system will be known as the Digital Currency Electronic Payment or DCEP for short. As for the online food seller company Meituan-Dianping, it has a whopping active userbase of 400 Million people making it one of the largest food delivery platforms in the world. Their recent performance is no joke as well. They increased their revenue by almost 50% in 2019 earning themselves a total of $14 Billion. Currently, the food delivery company is listed in Hong Kong. It has attracted a lot of attention for its performance recently as confirmed by its 2018 IPO in which major internet giant Tencent invested in it and it still remains one with a 20% equity stake in the company. Tencent has also backed this Digital Yuan initiative by supporting the online food brand on its direction to go towards crypto payments.
Speaking of Tencent, we can confirm that it is not only involved with the Digital Yuan plan with Meituan-Dianping but is also looking to include it in the operations of some other well notable companies. Very popular and widely used messaging and payments app WeChat which is owned by Tencent is stated to become a user of the Digital Yuan once it goes live. Video streaming platform BiliBili is also going to integrate the DCEP once it officially starts. Another company which received investment from Tencent, Startup Didi Chuxing is also looking to trial the Digital Yuan as a new payment option. Both these companies are holding talks with the PBoC. Tencent themselves are a firm believer in this new technology and according to reports by Bloomberg have set aside billions of dollars to integrate Blockchain and new technologies in their company.
So, what is your opinion on this? Should every country start its own CBDC? Is the Digital Yuan going to be a success? Will Tencent benefit from this procurement? We would be glad to hear all of your opinions so please feel free to reach out to us on Social media or comment below.