• China’s central bank digital currency (CBDC), the digital yuan, is being used in new application scenarios such as housing aid public resource transactions.
• Guidelines have been released to allow banks and local authorities to use the CBDC in their housing provident fund accounts.
• The digital yuan has also been used for state-run project evaluations, state-owned asset rental deposits and construction project loans.
China Introduces Digital Yuan for Housing Aid Transactions
China’s central bank digital currency (CBDC), the digital yuan, is making its way into various new application scenarios, including those related to housing aid public resource transactions. The development marks progress in the adoption of the digital currency by various entities.
Guidelines Allow Banks to Use CBDC for Housing Provident Fund Accounts
The Chinese government has issued a set of guidelines that will allow market participants to learn how to use the CBDC in their housing provident fund (HPF) operations. This includes banks, employees and citizens who want to make use of the digital yuan in HPF accounts as well as settlement, financing and accounting activities. HPF management centers across the country are now able to make use of “online digital yuan settlements and optimized business processes” according to reports from Xinhua Daily.
Digital Yuan Used For Various Other Purposes
The introduction of the guidelines opens up multiple avenues for using the CBDC with reports stating that over 5500 transactions have already taken place with settlements worth a combined total of around $204 million USD taking place via this method. Additionally, experts are being paid through the usage of this coin for performing evaluations on behalf of state-run projects while it is also being used for settlement fees related to state-owned property rights transfers as well as for deposit payments related to state-owned assets rentals.
Nanjing City Launches Digital Yuan Loans Platform
In addition, Nanjing city has launched a platform that makes use of this coin for providing loans towards construction projects with over ten public resource trading centers and sub-centers throughout China’s pilot zone having already adopted its usage as payments tool. On April 6th 2021 according to Xinhua Daily, Yancheng City Public Resources Trading Center processed bidding deposits worth $2.5 million USD through their Digital Yuan wallet alone indicating just how popular this payment system has become amongst users across China since its inception last year 2020.
Central Bank Promoting Application Of Token In Multiple Sectors
The Central People’s Bank of China has stated that it will actively promote application of its token in various sectors like government procurements, project biddings, property rights transactions etc., thereby furthering adoption rates throughout different areas within China itself while potentially setting an example which other countries could emulate if they wish so too once they see tangible benefits associated with usage amongst citizens within Chinese borders first hand via real world applications such as these mentioned here today!