Digital Yuans Debut in Securities Market – A Game-Changer?

Digital Yuans Debut in Securities Market - A Game-Changer?


Financial service providers in China are allowing citizens to pay for wealth products using the digital yuan, with the China Securities Regulatory Commission (CSRC) officially approving the first application scenario for the CBDC in the securities market, enabling investors to use the CBDC to buy into public funds and other financial products.

Financial service providers in China will allow citizens to pay for wealth products using the digital yuan, in a fresh development for the nation’s monetary authority digital currency (CBDC).

Per the Chinese media outlet Securities Times, the China Securities Regulatory Commission (CSRC) has “officially approved the 1st app  scenario for the digital yuan in the securities market.”

The CSRC is the main regulating authority of the Chinese securities industry.

The regulator’s ruling implies that Chinese investors will soon be able to use the CBDC to buy into public funds.

They will likewise be able to buy other “financial products” using the coin.

The move likewise implies that investors will be able to make e-CNY-powered assets via their smartphones.

Will Chinese Citizens Be Able to Buy Securities with CBDC?

Beijing is is still to put a date on a full rollout for this new “function” of the CBDC.

And it will likely begin with a pilot for “eligible users.”

On the other hand, the CSRC is expected to follow up with a pilot zone-wide rollout.

This will sooner or  thereafter allow securities traders and fund investors to choose the CBDC as a payment option in their trading apps.

The regulating authority also mentioned that using the digital yuan would provide investors with a range of advantages.

These include the  potential to “place orders 24/7,” outside normal trading hours.

The CSRC likewise argued that digital yuan-powered securities trades and fund assets would be “fully traceable.”

It also mentioned that could the CBDC could likewise be used to create financing smart contracts that could not be “illegally forged or copied.”

More Digital Yuan Applications to Roll Out

Elsewhere, the Economic Daily informed that corporations in a Chengdu science park (a hub for IT corporations in the city) have integrated a digital yuan solution that allows employees to ditch ID smart cards in favor of CBDC wallets.

The solution allows staff members of corporations at the park to use their wallets to access elevators, open gates, and doors.

They can likewise use the same wallets to make payments in the park.

The initiative was launched in conjunction with the Industrial and Commercial Bank of China, one of the nation’s largest state-owned commercial banks.

Past week, some universities in the pilot zone stated they were likewise adopting the digital yuan for use in “every” aspect of students’ “campus lives.”

The digital yuan wallet will similarly allow students to access buildings and prove their identity throughout their campuses.



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