Chinese language banks are searching for new makes use of for the digital yuan for funding and insurance coverage

Advertisements

Two Chinese banks are expanding their pilot programs for the digital state fiat. The state-run financial institutions have announced that they will allow digital yuan holders to purchase mutual funds and insurance products in the new currency.

Chinese banks are partnering with fund managers and insurers to find use cases for the digital yuan

China Construction Bank (CCB) and Bank of Communications (Bocom), two leading state-owned banks, are stepping up efforts to find new uses for the Central Bank Digital Currency (CBDC) issued by the People’s Bank of China. Lenders are now working with mutual fund managers and insurance companies as part of their digital yuan (e-CNY) pilot projects.

The cooperation is intended to facilitate the use of the digitized fiat currency for the purchase of investment funds and insurance products, reported the South China Morning Post (SCMP). Participants hope this could become another use case for the e-CNY “beyond daily low-value retail payments,” the publication notes.

According to a recent interim results release, the CCB has partnered with Shanghai Tiantian Fund Distribution to enable digital yuan users to make fund investments online. The platform is owned by the financial data service provider East Money, the report says. The Chinese e-commerce giant JD.com also supports the initiative. The bank’s executive vice president Zhang Min noted:

We have been involved in the research and development of the central bank digital currency since 2017, which we consider important for our payment system due to its ability to increase payment efficiency.

China Construction Bank has opened over 8.4 million digital wallets to individuals and businesses to date. As of June this year, CCB had processed a total of 28.5 million digital yuan transactions for 18.9 billion yuan ($ 2.9 billion).

“China’s central bank digital currency is legal tender, and from a commercial bank perspective, it is our obligation to promote the currency’s development and liquidity,” said Qian Bin, executive vice president of Bocom, on the interim results of the bank briefing last week. He announced that the Bank of Communications is exploring ways to use the e-CNY to fund management and insurance companies.

With the CBDC project, the world’s second largest economy is getting closer to building a cashless society. The Beijing government has conducted digital yuan tests in 11 pilot areas and cities in China, the Hong Kong-based newspaper points out. As of the end of June, 34.5 billion yuan had been spent over 70.75 million transactions. Chinese authorities distributed over $ 41 million to e-CNY in red envelope campaigns, according to a July report.

What other uses for the digital yuan do you expect from China? Do share your thoughts on the matter in the comments below.

Tags in this story

Applications, Bank of Communications, Banking, Bocom, CBDC, CCB, China, Chinese Construction Bank, Chinese, Currency, Digital Currency, Digital Yuan, e-CNY, Fiat, Holders, Insurance, Insurance Companies, Insurers, Investments, Mutual Funds, Use Cases, Users , Wallets

Photo credit: Shutterstock, Pixabay, Wiki Commons


Share post on

Sonic BTC is reader-supported. When you buy through links on our site, we may earn an affiliate commission.

NFT Infrastructure Supplier Rarify Will get $10 Million Funding in Sequence A Funding Spherical Led by Pantera Capital Bitcoin

NFT Infrastructure Supplier Rarify Will get $10 Million Funding in Sequence A Funding Spherical Led by Pantera Capital

Rarify, a startup that helps third parties include NFT elements in their tech platforms,...

By wpadminsonic164
Goldman Sachs Executes Financial institution’s First OTC Crypto Transaction Buying and selling a Bitcoin Non-Deliverable Choice Bitcoin

Goldman Sachs Executes Financial institution’s First OTC Crypto Transaction Buying and selling a Bitcoin Non-Deliverable Choice

On Monday, the multinational investment bank and financial services company Goldman Sachs disclosed it...

By wpadminsonic164
Andreessen Horowitz Launches A16z Crypto Analysis Lab Bitcoin

Andreessen Horowitz Launches A16z Crypto Analysis Lab

A16z, also known as Andreessen Horowitz, the venture capital (VC) company that has invested...

By wpadminsonic164
Bitcoin Value Nears $41,000 as US Inflation Jumps to eight.5% Bitcoin

Bitcoin Value Nears $41,000 as US Inflation Jumps to eight.5%

US inflation hits new 40-year record at 8.5%.Bitcoin traded green above $40,500 as the...

By wpadminsonic164
Lending platform Ledn launches bitcoin-backed mortgage product, bringing in $ 70 million Bitcoin

Lending platform Ledn launches bitcoin-backed mortgage product, bringing in $ 70 million

Ledn, the global platform for digital wealth savings and lending, announced the upcoming launch...

By wpadminsonic164
Central Financial institution Of Argentina Bans Banks From Providing Bitcoin, Crypto Providers Bitcoin

Central Financial institution Of Argentina Bans Banks From Providing Bitcoin, Crypto Providers

The central bank of Argentina has banned financial institutions from offering any services involving...

By wpadminsonic164
International Chip Scarcity Looms Over Bitcoin Mining Business, ASIC Provide Tightens Bitcoin

International Chip Scarcity Looms Over Bitcoin Mining Business, ASIC Provide Tightens

While Bitcoin's hashrate has been coasting along above 175 exahash per second (EH/s) and...

By wpadminsonic164
Bitcoin Enchancment Proposal 21 Eases Person Expertise When Paying Invoices Bitcoin

Bitcoin Enchancment Proposal 21 Eases Person Expertise When Paying Invoices

The below is a direct excerpt of Marty's Bent Issue #1181: "BIP21 is a...

By wpadminsonic164

Latest Posts

Look at These Proof Of Stake (PoS) Cryptocurrencies – Cardano Feed Cardano

Look at These Proof Of Stake (PoS) Cryptocurrencies – Cardano Feed

Proof of Stake (PoS) consensus mechanism is a type of consensus mechanism for blockchains...

By wpadminsonic164
Digital currencies Price Prediction: Dogecoin, Terra and Bitcoin – American Wrap 25 May – FXStreet Dogecoin

Digital currencies Price Prediction: Dogecoin, Terra and Bitcoin – American Wrap 25 May – FXStreet

Bullish or bearish? Dogecoin price is primed for a spike in volatility Dogecoin price...

By wpadminsonic164
BITCOIN🛑 It’s A Trap , Btc Market Update & Cryptocurrency News Videos

BITCOIN🛑 It’s A Trap , Btc Market Update & Cryptocurrency News

Cryptonews #Cryptotodaynews #cryptomalayalam #cryptoupdates #cryptonewstoday #sreekumartaks ഇന്നത്തെ Crypto ...

By wpadminsonic164
A Dogecoin Rally Would Be the Greatest Case State of affairs for Shiba Inu – InvestorPlace Dogecoin

A Dogecoin Rally Would Be the Greatest Case State of affairs for Shiba Inu – InvestorPlace

Source: Alfa Grandpa / Shutterstock.com Shiba Inu (SHIB USD) is not having a good...

By wpadminsonic164
Greater than Bitcoin: 7 New Altcoins Added To Nebeus Crypto-Backed Loans – Cryptonews Stellar

Greater than Bitcoin: 7 New Altcoins Added To Nebeus Crypto-Backed Loans – Cryptonews

Disclaimer: The text below is an advertorial article that was not written by Cryptonews.com...

By wpadminsonic164
LIVE: The Crypto Bear Market Will Finish Quickly! Enormous BTC Information! Videos

LIVE: The Crypto Bear Market Will Finish Quickly! Enormous BTC Information!

At the moment many traders are saying Crypto is in a bear market with...

By wpadminsonic164
NFT Infrastructure Supplier Rarify Will get $10 Million Funding in Sequence A Funding Spherical Led by Pantera Capital Bitcoin

NFT Infrastructure Supplier Rarify Will get $10 Million Funding in Sequence A Funding Spherical Led by Pantera Capital

Rarify, a startup that helps third parties include NFT elements in their tech platforms,...

By wpadminsonic164
Crypto alternate Binance says won’t settle for playing cards of sanctioned Russian banks – Moneycontrol Binance

Crypto alternate Binance says won’t settle for playing cards of sanctioned Russian banks – Moneycontrol

a,.special_wrapbx a{color:#333;font:400 11px Lato,sans-serif}.user_after_login a, .user_before_login a {color: #333333;font: 11px 'Lato',sans-serif;}.dropdown-menu{display:none;background-clip:border-box!important}.header_desktop .dropdown-menu>li{border-bottom:1px solid #e9e9e9}.header_desktop...

By wpadminsonic164