Tencent-Backed Food Delivery Company to Test China’s CBDC

Bloomberg reports that the People’s Bank of China (PBC) intends to begin testing its central bank digital currency (CBDC) on several platforms operated by the food delivery giant backed by Tencent Holdings – Meituan Dianping.

China’s CBDC On A Food Delivery Platform

Citing people familiar with the matter, Bloomberg informs that the large Chinese web-based shopping platform for locally found foods, consumer products, and retail services – Meituan Dianping – has been in contact with the PBC for a considerable period.

While the specifics of the partnership have yet to be disclosed, the two entities have been negotiating to establish a proper way for Meituan to use the upcoming CBDC.

Once launched, the Chinese’s virtual currency could see mass adoption from its association with Meituan. The company hosts a massive volume of daily transactions amounting to billions of dollars from meal deliveries to online travel services.

Another local giant, the ride-hailing mobile service DiDi, recently said that it has entered into a strategic partnership with the Digital Currency Research Institute of the PBC. The organization wants to acceleration the application of the upcoming digital currency by forming its own task force to develop and implement various use-cases for the CBDC on its platform.

China’s CBDC Testing

Although numerous world central banks have admitted currently working on digital currencies, China is believed to be the most advanced nation. The country plans to enhance the grip over its population by allowing the government to monitor all financial transactions employing the CBDC, a recent report claimed.

Nevertheless, local news indicated that testing has already begun in several Chinese regions. Trials were also conducted in massive US chains, including Subway, Starbucks, and McDonald’s.

Additionally, by working together with the Chinese Agricultural Bank, the PBC has tested a mobile application linked to the CBDC, according to an alleged screenshot. The photo displayed several basic functions coming from the app. Those included paying utility bills, similarly to other online platforms such as Alibaba’s Alipay, and allowing two people to simply touch their mobile devices and to execute a money transfer immediately (touch and touch).

While the precise launch date is unknown, reports emerged in May that the most populated nation plans to use the digital currency for post-COVID-19 stimulus.