As the central bank digital currency (CBDC) implementation intensifies, an increasing number of Chinese government city authorities, banks, and businesses are looking to utilise the digital yuan as a payment method. Beijing appears to be attempting to strengthen the e-CNY’s reputation as a vehicle for international trade, as seen by a series of similar actions taken in recent months.
News Summary
- Beijing appears to be attempting to strengthen the e-CNY’s reputation as a vehicle for international trade, as seen by a series of similar actions taken in recent months.
- State-owned banks have said they are interested in investigating the use of smart contracts in yuan-powered digital finance.
- The bank claimed that for the offers, it had collaborated with a tech startup.
A “10-point digital yuan adoption plan” has been made public by the city of Yiwu in Zhejiang Province, East China, according to the Zhejiang Daily (via the Shenzhen Securities Times).
Regarding “exploring the development of digital yuan cross-border payment applications,” this strategy makes suggestions.
According to the city, these applications will be “based on the payment needs of Chinese individuals based overseas.”
Additionally, the city declared its intention to collaborate on worldwide CBDC interoperability solutions.
These actions seem to indicate that Beijing has now changed its official position on the e-CNY from that it was being developed primarily for internal purposes.
In fact, two “cross-border” pilot projects in Macau and Hong Kong are currently investigating the token’s cross-border possibilities. The latter two each have distinct currencies and substantially independent financial systems.
According to Guangzhou Daily (via Shanghai Securities News), the most recent advancement in this area is a portal that enables users to send “overseas tax payments” using the digital yuan. People who live in Macau can utilise the platform to pay their taxes and other fees by using the CBDC on the Mainland.
State-owned banks have said they are interested in investigating the use of smart contracts in yuan-powered digital finance.
The Postal Savings Bank of China has “launched the nation’s first e-commerce and fitness industry-focused prepaid digital yuan products,” according to Xinhua through Qingdao News.
The bank claimed that for the offers, it had collaborated with a tech startup. Additionally, it stated that the change would enable clients to pay for items, lessons, and equipment using the WeChat user interface.
Media outlets earlier this week claimed that more Chinese workers and businesses are adopting the digital yuan to pay social insurance payments and taxes.
