Financial service providers in China will allow citizens to pay for wealth products using the digital yuan, in a fresh development for the nationโs monetaryย authority digitalย currency (CBDC).
Per the Chinese media outlet Securities Times, the China Securities Regulatory Commission (CSRC) has โofficially approved the 1st appย scenario for the digital yuan in the securities market.โ
The CSRC is the main regulatingย authority of the Chinese securities industry.
The regulatorโs ruling impliesย that Chinese investors will soon be able to use the CBDC to buy into public funds.
They will likewise be able to buy other โfinancial productsโ using the coin.
The move likewise impliesย 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 isย still to put a date on a full rollout for this new โfunctionโ of the CBDC.
And it will likely begin with a pilot for โeligible users.โ
Onย theย otherย hand, the CSRC is expected to follow up with a pilot zone-wide rollout.
This will soonerย orย thereafter allow securities traders and fund investors to choose the CBDC as a payment option in their trading apps.
The regulatingย authority alsoย mentionedย that using the digital yuan would provide investors with a range of advantages.
These include theย potential to โplace orders 24/7,โ outside normal trading hours.
The CSRC likewise arguedย that digital yuan-powered securities trades and fund assets would be โfully traceable.โ
It alsoย mentionedย that could the CBDC could likewise be used to create financing smart contracts that could not be โillegally forged or copied.โ
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 nationโs largest state-owned commercial banks.
Pastย week, some universities in the pilot zone stated they were likewise adopting the digital yuan for use in โeveryโ aspect of studentsโ โcampus lives.โ
The digital yuan wallet will similarly allow students to access buildings and prove their identity throughout their campuses.
