Chinese municipal bank issues first-ever digital yuan loan using intellectual property as collateral

The People’s Bank of China, which presently has 15 provinces with e-CNY testing centres, stated two days earlier that it wished to increase this number.

Chinese municipal bank issues first-ever digital yuan loan using intellectual property as collateral
The loan was given to an unnamed company that makes environmental protection equipment for steel plants in Suzhou province.

The agriculture commerce bank of Zhangjiagang, based in China’s Suzhou province, pronounced that it had issued a 500,000 digital yuan (e-CNY) loan with collateralised intellectual property supporting it. The city’s financial markets regulator, consumer markets regulator and municipal officials all unanimously approved the loan’s issuance, as reported by Cointelegraph quoting local news outlet Sohu.

The People’s Bank of China, which presently has 15 provinces with e-CNY testing centres, stated two days earlier that it wished to increase this number. The central bank recorded 264 million e-CNY transactions totaling 83 billion CNY ($12.29 billion) since its debut in its most recent statistics update on May 31. E-CNY is accepted at more than 4.567 million merchant terminals in China.

The unidentified loan beneficiary praised the speed and efficiency of the e-CNY transaction. They received the equivalent of 500,000 CNY, which was worth $74,020 at the time of publication.

The loan was given to an unnamed company that makes environmental protection equipment for steel plants in Suzhou province. According to the company, it chose to test out the new borrowing strategy where the loan was immediately released into its e-CNY digital wallet due to an increase in the amount of client bills. The country’s e-CNY pilot programme, according to the Agricultural Commerce Bank of Zhangjiagang, is continuing with this experiment.

In addition, 64 businesses that are researching blockchain technology are listed on the Shanghai and Shenzhen stock exchanges and have a combined market valuation of 560 billion CNY ($82.9 billion). China appears to have upped its efforts on creating its digital currency in recent months, noting the advantages of boosting consumer spending after COVID-19 lockdowns had hurt the economy. Participants can presently claim prizes from a number of e-CNY airdrops and use them at different merchant platforms.

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