In a significant development for digital currency adoption, three entrepreneurial founders became the first recipients of Central Bank Digital Currency (CBDC) loans from the state-owned Bank of Communications through JDZ, as reported by the Theo Changsha Evening News.
On May 12th, three Changsha-based entrepreneurs, who were shortlisted by the Science and Technology Department of Hunan Province, China, successfully withdrew a total of 583,100 yuan from their corporate online banking accounts at the Bank of Communications. The loan funds were transferred to their corporate digital renminbi (e-CNY) wallets, providing crucial operating capital for their businesses, including payment for goods and other operational expenses.
This milestone marks the first digital renminbi inclusive loan scenario in Hunan Province and the inaugural technology-based enterprise knowledge value credit loan scenario issued by the Bank of Communications using digital renminbi. The initiative holds great significance for the exploration of digital renminbi in the field of inclusive loans.
Credit loans, as one of the most fundamental financial services, have been a focal point of the digital renminbi pilot project conducted by the Hunan Branch of the Bank of Communications. By leveraging digital renminbi for online lending, companies benefit from real-time funds availability and eliminate handling fees and time-consuming fund transfers. Settlement can be seamlessly completed upon payment, facilitating efficient working capital management.
Moreover, the closed-loop circulation of credit funds and their utilization is ensured, enhancing the authenticity and credibility of the financial ecosystem. These advantages significantly enhance the convenience and accessibility of inclusive finance, providing a much-needed boost to small and micro-enterprises and contributing to economic recovery and business development.
Changsha, as one of the second batch of pilot cities for the digital renminbi in China, is actively driving the adoption of digital currency. The Bank of Communications Hunan Branch, in line with this objective, is committed to developing diverse digital renminbi scenarios through technological empowerment. By doing so, they aim to enhance the efficiency and inclusivity of digital financial services, while supporting the transformation and development of the digital economy in Hunan Province.
As the digital renminbi pilot continues to expand and mature, more small and medium-sized enterprises are expected to benefit from inclusive loan opportunities, fostering innovation, growth, and economic resilience in Changsha and beyond.
Read more:
- JD.Com And Bank Of China Explore Cross-Border Digital Yuan (E-CNY) Consumption
- Beijing, Suzhou Announced That The Digital Renminbi (E-CNY) Can Be Used In Its Railway And Subway System
- China’s Digital Yuan (E-CNY) Pilot Expands To Include Salaries Of Civil Servants And State-Owned Units