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Previously, the Chinese CBDC has been subjected to a series of retail trials in some of its most technologically advanced regions including but not limited to Shanghai and Suzhou.
As the most advanced economy with an active Central Bank Digital Currency (CBDC) in circulation, China’s Digital Yuan (e-CNY) is now gaining a more customized utility in the country. As reported by the China Securities Journal, the e-CNY can now be used to purchase securities, as it was used for this purpose for the first time on Monday.
The purchase of securities and wealth management service products was facilitated with the help of the Bank of China digital wallet. Following this inaugural move, the expansion of the use of the Digital Yuan for the purchase of securities can be accessed through the Soochow Securities mobile application.
The People’s Bank of China (PBoC) has remained very deliberate with respect to its research and development efforts bordering on the Digital Yuan. With many use cases in the pipeline to be implemented, the purchase of securities products was resorted to as one of the first important mega shifts to integrate the CBDC into the broader digital and financial economy.
The purchase of securities with China’s CBDC, e-CNY through Soochow was an initiated that was designed in alliance with the “Bank of China, China Unicom, and other digital renminbi research institutions to carry out in-depth research, and formed multiple digital currency innovative application solutions in the securities field in terms of digital currency payment, smart contracts, and interconnection.”
Designed to cater to the complex financial needs of stakeholders in the Chinese financial ecosystem, Soochow Securities has detailed plans to continue to develop products and services that can easily be powered by the Digital Yuan ahead of its mega nationwide launch.
Amongst its core aims is to enable securities investors to “experience the safety, convenience, and efficiency of digital RMB services, and drive the high-quality development of the securities industry and Suzhou’s local digital economy.”
China’s e-CNY and the Growing CBDC Adoption
As reported by the local media outlet, Yicai Global, China’s e-CNY was made available for transactions in offline environments pushing further the boundaries of the CBDC. Per the report, the Digital Yuan was made available in cash circulation for the first time.
The Chinese CBDC has been subjected to a series of retail trials in some of its most technologically advanced regions including but not limited to Shanghai and Suzhou.
The Digital Yuan was a prominent part of the Beijing Olympics Games in early 2022, and though the government has not shared official data on when the new legal tender will be made officially available to every member of the public nationwide, it has continued to increase accessibility to the new money in the most creative ways.
Amongst the most ambitious use case of the e-CNY at this time include the use of the new money for payment of public transport fares and its acceptance by ride-hailing giant Didi Global Inc (OTCMKTS: DIDIY)