Chinese Municipal Bank Issues First E-CNY Loan to Manufacturing Unit as Part of Digital Yuan Expansion

The loan was given to an unnamed company that makes environmental protection equipment for steel plants.

Chinese Municipal Bank Issues First E-CNY Loan to Manufacturing Unit as Part of Digital Yuan Expansion

The bank has accepted intellectual property as collateral for the loan

Highlights
  • The bank has kept the name of the loan seeker under wraps
  • Local banks have been offering digital yuan loans since June
  • The Central Bank intends to set up more e-CNY testing sites

The Agricultural Commerce Financial institution of Zhangjiagang, situated in China's Suzhou province in the Southeast portion of the country, has issued a 500,000 digital yuan (e-CNY) mortgage worth around Rs. 58.7 lakh, with intellectual property backing it as collateral. The mortgage was issued by way of unanimous approval by the town's shopper markets regulator, monetary markets regulator and municipal officers. The People's Bank of China, which presently has 15 provinces with e-CNY testing centres, stated recently that it wished to increase this number.

As per a report by local news outlet Sohu, the recipient of the mortgage is an entity manufacturing environmental safety gear for metal factories in Suzhou province. As informed by the entity, on account of an uptick within the variety of shopper invoices, it determined to experiment with the new borrowing methodology, the place the mortgage was straight launched into its e-CNY digital pockets. In the meantime, the Agricultural Commerce Financial institution of Zhangjiagang mentioned this was one more experiment within the nation's e-CNY trial program.

The development also happened within two days of the People's Bank of China mentioning that it needs to broaden its existing number of e-CNY testing sites, that are currently present in 15 provinces. As of May 31, the central financial institution recorded 264 million e-CNY transactions totaling CNY 83 billion ($12.29 billion or roughly Rs. 97,505 crore) since inception. Over 4.567 million service provider terminals throughout China settle for e-CNY as fee.

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 and 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.


Why is Oppo making strange choices with its flagship Reno series? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Cryptocurrency, China, Digital Yuan, CBDC
Shomik Sen Bhattacharjee
Shomik is a senior sub-editor at Gadgets 360. As someone who's screened the consumer tech space for the past four years, he's now shifted focus to the crypto-verse. When not converting currency values in his head, you may find him in an intense five-a-side football match or grinding out the newest Destiny 2 weekly challenge on his Xbox. You can reach him for tips or queries at ShomikB@ndtv.com. More
Noise X-Fit 2 Smartwatch With Over 150 Watch Faces, IP68 Rating Launched in India: Details
Crossbeats Ignite Grande With Ultra-HD LTPS Display Launched in India
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.