fbpx
Skip to content Skip to sidebar Skip to footer

Chinese Municipal Bank Launches First Digital Yuan Loan Collateralised by IP

China's CBDC

According to local news outlet Sohu, China’s Suzhou province bank, the Agricultural Commerce Bank of Zhangjiagang disclosed that 500,000 digital yuan (e-CNY) loan had been issued — with intellectual property backing it as collateral. 

The city’s consumer markets regulator, financial markets regulator, and municipal officials have approved the issued loan in unison.

The loan is given to an anonymous entity that makes environmental protection equipment for steel factories in Suzhou province. 

According to the entity, it chose to experiment with the new borrowing method where the loan was directly released into its e-CNY digital wallet, as there has been an increasing amount of client invoices. 

The Agriculture Commerce Bank of Zhangjiagang said that this was yet another test in China’s e-CNY trial program.

The e-CNY testing sites from the People’s Bank of China are currently scattered all throughout the 15 provinces. The bank announced two days ago that it intends to expand the sites further. 

Based on the most recent data update on May 31, the central bank has counted 264 million worth of e-CNY transactions, which is $12.29 billion total since inception. In China, e-CNY payment is accepted at about 4.567 million merchant terminals.

Approximately 64 Shanghai and Shenzhen Stock Exchange-listed businesses — with a combined market cap of $82.9 billion — are looking to dip their toes into blockchain technology.

China appears to have increased focus on developing its central bank digital currency in recent months, noting the advantages of stimulating consumer spending after the damage to the economy caused by COVID-19 lockdowns. Participants can claim prizes on several ongoing e-CNY airdrops and use them at different merchant platforms.

Leave a comment