Chinese Firms and Banks Develop Digital Yuan Supply Chain Financing Solution
Chinese firms and commercial banks, including JD Technology and the Industrial and Commercial Bank of China (ICBC), have collaborated on a new digital yuan supply chain financing solution. The solution will utilize digital CNY smart contract technology to provide a range of services for corporate digital yuan users, such as online wallet opening and more efficient financing controls. The companies plan to showcase the solution at an international trade fair in Beijing next month. The solution aims to improve settlement efficiency, traceability, and security, as well as verification and risk identification for small and medium enterprises. Financial institutions will benefit from improved trust. Other firms are expected to exhibit their own CBDC solutions at the fair.
JD.com’s Digital Yuan Adoption Efforts
JD.com, China’s e-commerce giant, has been actively involved in the adoption of the digital yuan. The company has collaborated with the People’s Bank of China’s Digital Currency Research Institute and has been accepting digital yuan payments since 2020. Currently, there are approximately 15 million users of the CBDC on JD.com’s platform, with almost 20 million CBDC wallets opened. The company has processed over $412 million worth of CBDC transactions. JD.com will showcase multiple e-CNY application scenarios at the trade fair and has partnered with several banks for giveaways to promote adoption.
JD.com’s CBDC Solutions for City Governments
In addition to its efforts with retail consumers and financial institutions, JD.com is developing CBDC solutions for city governments in the pilot zone. The company has built a digital yuan software as a service (SaaS) platform that offers one-stop services for government organs and financial services providers. This platform includes digital yuan payment access and marketing promotion solutions. JD.com is also working on Hong Kong-based e-CNY solutions, along with the Bank of China.
Hot Take:
Chinese firms and banks are making significant progress in developing digital yuan supply chain financing solutions. The use of digital CNY smart contracts and the integration of the e-CNY in supply chain financing will provide improved efficiency, traceability, and security. This development will benefit corporate users, small and medium enterprises, and financial institutions, ultimately contributing to the wider adoption and acceptance of the digital yuan.
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