The city of Suzhou in China’s Southeast became the latest to issue an e-CNY loan to a manufacturing unit.
See related article: China’s central bank to expand digital yuan pilot program
Fast facts
- Rural Commercial Bank of Zhangjiagang issued a 500,000 yuan (US$74,024) digital yuan loan to an unnamed environmental protection equipment maker located in the city’s Nanfeng township to fill the capital turnover gap, according to a press release issued by Suzhou Market Supervision on Wednesday.
- In June, local banks in the city started offering digital yuan loans ranging from 70,000 yuan to 1.5 million yuan (US$10,363-US$222,074) to businesses and individuals, according to reports from local media.
- Bank of Suzhou had offered a 2 million yuan (US$296,116) non-collateral digital yuan loan to a local machinery manufacturing enterprise in June.
- In addition to Suzhou, Shaanxi Province and the city of Guangzhou have also started to issue digital yuan loans since June, according to local media reports.
- “Regulators can track an monitor illegal use of loan funds in digital yuan, and the digital currency will also facilitate monitoring fund flows of enterprises in real time, for regulators to assess the operating and repayment capabilities of the firms, when digital yuan been mass adopted in the future,” said Liu Bin, director of Shanghai Pudong Reform and Development Research Institute in a report published by state-media China Securities Journal in July.
- Liu added that the digital yuan will also apply to financial fields such as property mortgages, supply chain finance, and cross-border finance.
See related article: Complete anonymity never a consideration for CBDC: PBoC official