China Increases Use Case for Digital Yuan into Investment and Insurance

Azeez Mustapha
1 September 2021 | Updated: 1 September 2021

Two top state-run Chinese banks, namely China Construction Bank (CCB) and Bank of Communications (Bocom), have ramped up editors to develop new use cases for the PBoC-issued CBDC (central bank digital currency). The behemoth financial institutions now collaborate with investment fund managers and insurance companies in line with their digital yuan (e-CNY) pilot projects.

According to a report by South China Morning Post (SCMP), banks aim at instituting the use of the e-yuan in purchasing investment funds and insurance products. The institutions noted that this is a critical use case for the digital yuan “beyond the low value, daily retail payments.”

A recent report showed that the CCB partnered with Shanghai Tiantian Fund Distribution to create an avenue for e-CNY users to facilitate online investment fund payments. The Executive Vice-President of the CCB Zhang Min noted that:

“We have since 2017 been participating in the research and development of the central bank digital currency, which we view as significant for our payment system due to its ability to enhance payment efficiency.”

China Continues to Boost e-CNY Distribution and Adoption

Local reports show that the CCB has created over 8.4 million digital wallets for individuals and enterprises so far. Also, the giant financial institution has facilitated over 28.5 million e-CNY transactions (as of June), amounting to about 18.9 Billion yuan or $2.9 billion. At the bank’s interim results briefing last week, the Executive Vice-President of Bocom, Qian Bin, stated that:

“China’s central bank digital currency is a form of legal tender, and from the perspective of a commercial bank, it is our obligation to facilitate the development and liquidity of the currency.”

With the progress seen in the adoption of the digital yuan, China moves ever so close to developing a completely cashless society. A report in July showed that the second-largest economy distributed over $41 million of digital yuan in red envelope campaigns.

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!
Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.