China is getting serious to not let the US based stablecoins have a footprint on the soil. That's one of the reasons they made the digital yuan way before US could even roll out it's own CBDC. And now china has decided to roll out use case across everyday shops and the statups.
Recently few startups have now integrated the Digital Yuan. And those startups have made it available through the payment pages. And the rest of the workflow has not changed which kind of benefits the CBDC in the china. Which also means the Digital Yuan is finally a CBDC in action.
Didi, a ride sharing company has decided to accept the Digitla Yuan for it's ride sharing, delivery and taxi service. So multiple services and the payment gateway would be accepting the blockchain based CBDC as a payout method.
Let's talk about how this integration has been helping the startups and the services in the China.
Image Credit: Asia Nikkei
So who is integrating the Digital Yuan? Plenty of services, startups and apps which make use of the digital payment system inside the apps.
Ride Sharing, Delivery Service and Renting with Digital Yuan
Didi is an ecosystem of services where you can book the cabs, taxi and the ride sharing system. You can also get the rental bikes, cycles and the delivery system using the Didi app. It would accept the Digital Yuan as a payment service in it's gateway.
Currently there are not many in crypto options as of now. But the Digitla Yuan is getting the preferred treatment inside the app. Which is kind of expected considering the digital payment solutions making priority for local CBDC. China would have forced otherwise if startups resisted.
Digital Yuan integrating into App Startups
Yuan started it's integration through the app they wanted the asian game players to use. And that event turned out to be super successful And now the Digital Yuan is available in the apps which made the payment possible during the events time and this was also a pilot before the rollout happened.
Now next integration is obviously app based services which requires the investment into the startup models. And the services which are already established and they can benefit out of the payment gateway integration. Which would happen if any big company like Alibaba comes into the play.
China wanted to deploy the CBDC but through use case which makes it easier to adopt. Because if they were to force people or put up ads, that would reduce the adoption. So giving the option through apps was the best way they could integrate the digital Yuan. That's what they did as well.
Digital Yuan footprint challenging Stablecoins
Circle Inc has managed to deploy the USDC into the taiwan. Though Taiwan considers itself out of the China. But that has turned out to be a threat for the CBDC that china has developed. If more and more stablecoins set foot in china that would hurt the Yuan. Which is what they are against.
And that means slowly they would make Yuan an important part of the payment gateways. And slowly other cryptos would be either getting the ban or they would be booted out of the ecosystem. And then the Yuan would go out of the nation to dominate other nations.
Digital Yuan is china's answer to retaliate against the USD based stablecoins on the soil. And they would trying all they can with the tech to push off the USD based stablecoins and establish itself before other nations would be going for catching up in the market.