Bank of China enables customers to invest and take out insurance using national virtual currency

Bank of China enables customers to invest and take out insurance using national virtual currency

The introduction of China’s national virtual currency – the digital yuan – in funds on a web based funding and insurance platform extends the use of this virtual currency past the standard small transactions …

If profitable, this might enhance the use of the digital yuan past paying for small, low-value transactions each day. This virtual currency has been developed by the Central Bank of China (PBOC) since 2014 and is being piloted in additional than 10 provinces and cities of the world’s most populous nation for a lot of sorts of transactions.China’s two main state-owned banks, Bank of Communications (BoCoM) and China Construction Bank (CCB), are launching a pilot program with the digital yuan (e-CNY), which is able to permit customers to use this virtual currency to invest in funds as effectively in accordance to SCMP to purchase insurance merchandise on-line.

“We have been researching and growing digital central financial institution currencies since 2017. We contemplate this virtual currency to be an important consider our fee system because it helps enhance transaction effectivity, “mentioned Zhang Min, vp of CCB, on the press convention to announce the corporate’s outcomes.In a press release late final week, CCB introduced that the financial institution has partnered with the Tiantian Fund Distribution Platform, owned by monetary providers firm East Money, to allow customers to use the yuan quantity to invest in funds on that platform. The e-commerce firm JD.com can be concerned within the cooperation.

According to its personal data, CCB has opened 7.23 million e-wallets for personal customers and 1.19 million wallets for company customers. As of the top of June, the financial institution had recorded 28.5 million digital yuan transactions with a complete worth of 18.9 billion yuan (2.9 billion yuan). Billion USD).

Meanwhile, BoCom is engaged on the concept of ​​increasing the applying of the digital yuan to fund administration and insurance.

“The digital currency of the central bank is a legal payment instrument and as a commercial bank we have an obligation to promote its growth and liquidity,” mentioned BoCom Vice President Qian Bin at a press convention to announce the enterprise outcomes final weekend. “We have carefully prepared to ensure the stable and highly efficient operation of the digital yuan payment system.”

At the top of June, BoCoM recorded 6.3 million digital yuan transactions with a complete worth of 2.5 billion yuan (equal to greater than 386 million yuan). Million {dollars}).

The Chinese authorities is at the moment testing the use of the digital renminbi in 11 areas and cities. The nation plans to use the currency on the Beijing Winter Olympics in February 2022. According to the PBOC’s digital yuan white paper revealed in July, the quantity of digital yuan transactions reached 70.75 million by the top of June this yr, for a complete of 34.5 Billion USD.

The world’s second largest financial system is transferring in direction of a cashless society by pushing customers to use e-wallets to pay for items and providers as a substitute of paper cash and cash.

When the PBOC laid the groundwork for the digital yuan mission seven years in the past, the principle purpose was to counter the dominance of private digital wallets like Alipay and WeChat Pay. Alipay and WeChat Pay, owned by Ant Group and Tencent respectively, now maintain greater than 90% of the cell fee market share in China.

Since then, nevertheless, the digital renminbi has step by step emerged as a possible answer for executing giant cross-border transactions.

In February, the Hong Kong Monetary Authority introduced the Inthanon-LionRock mission of the Central Bank of Hong Kong with the participation of the PBOC and the Central Bank of the United Arab Emirates (UAE). To discover methods to use digital currencies for cross-border trade, this mission was initially a collaboration between the Central Bank of Hong Kong and the Central Bank of Thailand.

Duc Anh

VnEconomy