Financial service providers in China will allow citizens to pay for wealth management products using the digital yuana new positive development for the digital currency in the country’s central bank (CBDC).
According to the Chinese media Securities Times, the China Securities Regulatory Commission (China Securities Regulatory CommissionCSRC) has “officially approved the first case of using the digital yuan in the securities market”.
The CSRC is the primary regulator of China’s securities industry.
The regulator’s decision means that Chinese investors will soon be able to use CBDC to buy government securities.
They will also be able to invest in other “financial products” using the token.
This decision also means that investors will be able to make e-CNY powered investments via their smartphones.
Will Chinese citizens be able to buy bonds with CBDC?
Beijing has yet to set a date for the full rollout of this new “feature”.
Its implementation will probably start with a pilot project for “eligible users”.
But the CSRC should follow up with a rollout of the pilot project on the scale of the zone.
This will eventually allow stock traders and fund investors to choose CBDC as a payment option in their trading apps.
The regulator added that using the digital yuan would provide investors with a number of benefits.
These include the ability to “place orders 24/7” outside normal business hours.
So did the CSRC securities transactions and investments driven by the digital yuan would be “fully traceable”.
He added that CBDC could also be used to create smart investment contracts that could not be “manipulated or illegally copied”.
More uses of the digital yuan are coming
Elsewhere, the Economic Daily news outlet reported that companies in a research park in Chengdu (a hub for IT companies in the city) have integrated a digital yuan solution that allows employees to ditch smart card IDs in favor of CBDC wallets.
The solution allows employees in park companies to use their wallet to access elevators, open gates and doors.
They can do that too use the same wallets to make payments in the park.
The initiative was launched in collaboration with Industrial and Commercial Bank of Chinaone of the largest state-owned commercial banks in the country.
Last week, some universities in the pilot area have said they will also adopt the digital yuan for one use in “all” aspects of student “campus life”.
The digital wallet will also allow students to access buildings and prove their identity across their campuses.
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