According to local media Sohu, on Wednesday, Zhangjiagang Agricultural Trade Bank, located in the Chinese province of Suzhou, announced that it had issued a digital loan of 500,000 digital yuan with intellectual property as collateral. The loan was issued with the unanimous approval of the city’s consumer markets regulator, financial markets regulator and city officials.
The loan beneficiary, whose name is not mentioned in the report, is an entity that manufactures environmental protection equipment for steel mills in Suzhou province. According to the entity, due to an increase in the number of customer invoices, it decided to experiment with the new loan method, in which the loan was released directly into its digital yuan digital wallet. For its part, the Zhangjiagang Agricultural Trade Bank said it was another experiment in the country’s digital yuan trial program.
Two days earlier, the People’s Bank of China said it wants to expand the number of test sites for the digital yuan, which are currently in 15 provinces. In its latest data update, dated May 31, the central bank recorded 264 million transactions with the digital currency totaling 83 billion yuan ($12.29 billion) since its inception. More than 4.567 million merchant terminals across China accept the digital yuan as a payment method.
In addition, 64 companies with a combined market capitalization of 560 billion yuan ($82.9 billion) listed on the Shanghai and Shenzhen stock exchanges are exploring Blockchain technology.. In recent months, China appears to have increased its focus on developing its central bank digital currency, citing benefits in stimulating consumer spending after the COVID-19 lockdowns slowed the economy. Several digital yuan airdrops are currently underway for participants to claim rewards and use them on various trading platforms.
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