Chinese municipal bank issues first-ever digital yuan loan using ip as collateral

Reported by local news outlet Sohu, on Wednesday, the Farming Commerce Bank of Zhangjiagang, situated in China’s Suzhou province, announced it had issued a 500,000 digital yuan (e-CNY) loan with ip backing it as being collateral. The borrowed funds was issued via unanimous approval through the city’s consumer markets regulator, markets regulator and municipal officials. 

Unnamed within the report, the person receiving the borrowed funds is definitely an entity manufacturing ecological protection equipment for steel factories in Suzhou province. As told through the entity, because of an uptick in the amount of client invoices, it made the decision to test out the brand new borrowing method, in which the loan was directly released into its e-CNY digital wallet. Meanwhile, the Farming Commerce Bank of Zhangjiagang stated it was another experiment within the country’s e-CNY trial program.

2 days prior, the People’s Bank of China stated it really wants to expand further the amount of e-CNY testing sites, that are presently in 15 provinces. In the newest data update on May 31, the central bank tallied 264 million e-CNY transactions totaling 83 billion CNY ($12.29 billion) since beginning. Over 4.567 million merchant terminals across China accept e-CNY as payment.

Related: Greater than 2.six million users subscribed to the town of Shenzhen’s digital yuan airdrop

Furthermore, 64 companies having a total market cap of 560 billion CNY ($82.9 billion) on the Shanghai and Shenzhen stock markets are exploring blockchain technology. In recent several weeks, China has apparently elevated its concentrate on developing its central bank digital currency, citing the advantages of stimulating consumer spending after COVID-19 lockdowns had hampered the economy. Various e-CNY airdrops are presently ongoing for participants to assert rewards and employ them at various merchant platforms.

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