Chinese banking to use digital yuan in investments and insurance

The state financial institutions China Construction Bank (CCB) and Bank of Communications (Bocom), leaders in the banking sector, are increasing their efforts to expand their pilot programs on the Central Bank Digital Currency, CBDC, of ​​China: the digital yuan or e-CNY.

The goal of banking institutions is to enable owners of digital yuan to obtain investment funds and insurance products using the new currency. For which the institutions partner with fund managers and insurers to explore the use of the digital yuan.

According to the South China Morning Post publication, the cooperation will “facilitate the use of the digital yuan for the purchase of mutual funds and insurance products, and the participants hope that this will become another use case for e-CNY beyond low-value daily retail payments.”

Financial activities

The CCB bank recently established an alliance with Shanghai Tiantian Fund Distribution in order to provide clients with the ability to make fund investments online with digital yuan. Zhang Min, Executive Vice President of the bank said: “Since 2017 we have been participating in the research and development of the central bank digital currency, which we consider important to our payment system due to its ability to improve the efficiency of payments.”

While China Construction Bank, until June, had opened “8.4 million digital wallets for individuals and companies”, making a total of “28.5 million yuan digital transactions, for 18.9 billion yuan”, equivalent to 2.9 billion dollars.

On the other hand, China has been carrying out different tests with the digital yuan in sectors such as the Beijing subway, in ATMs. In addition, some provinces are cancelling the wages of workers with the digital currency, which shows that the Asian giant is advancing energetically with its digital currency.

M. Rodríguez

Source: diariobicoin.com