China expands digital yuan loans to further cities

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The city of Suzhou in China’s South­east became the lat­est to issue an e‑CNY loan to a man­u­fac­tur­ing unit.

See relat­ed arti­cle: China’s cen­tral bank to expand dig­i­tal yuan pilot program

Fast facts

  • Rur­al Com­mer­cial Bank of Zhangji­a­gang issued a 500,000 yuan (US$74,024) dig­i­tal yuan loan to an unnamed envi­ron­men­tal pro­tec­tion equip­ment mak­er locat­ed in the city’s Nan­feng town­ship to fill the cap­i­tal turnover gap, accord­ing to a press release issued by Suzhou Mar­ket Super­vi­sion on Wednesday.
  • Bank of Suzhou had offered a 2 mil­lion yuan (US$296,116) non-col­lat­er­al dig­i­tal yuan loan to a local machin­ery man­u­fac­tur­ing enter­prise in June.
  • In addi­tion to Suzhou, Shaanxi Province and the city of Guangzhou have also start­ed to issue dig­i­tal yuan loans since June, accord­ing to local media reports.
  • “Reg­u­la­tors can track an mon­i­tor ille­gal use of loan funds in dig­i­tal yuan, and the dig­i­tal cur­ren­cy will also facil­i­tate mon­i­tor­ing fund flows of enter­pris­es in real time, for reg­u­la­tors to assess the oper­at­ing and repay­ment capa­bil­i­ties of the firms, when dig­i­tal yuan been mass adopt­ed in the future,” said Liu Bin, direc­tor of Shang­hai Pudong Reform and Devel­op­ment Research Insti­tute in a report pub­lished by state-media Chi­na Secu­ri­ties Jour­nal in July.
  • Liu added that the dig­i­tal yuan will also apply to finan­cial fields such as prop­er­ty mort­gages, sup­ply chain finance, and cross-bor­der finance.

See relat­ed arti­cle: Com­plete anonymi­ty nev­er a con­sid­er­a­tion for CBDC: PBoC official

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