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.

By Shomik Sen Bhattacharjee | Updated: 4 August 2022 19:44 IST

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.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

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.

Soulbound Token Explained: Here's Everything You Need to Know

“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.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.