As local news agency Sohu reported, on Wednesday, the Agricultural Commerce Bank of Zhangjiagang, located in China’s Suzhou Province, announced that it had issued a 500,000 digital yuan (e-CNY) loan with intellectual property backing it as collateral. The loan was issued with unanimous approval from the city’s consumer markets regulator, financial markets regulator and municipal officials.
Unnamed in the report, the recipient of the loan is an entity that manufactures environmental protection equipment for steel mills in Suzhou Province. As he said from the entity, due to the increase in the number of customer invoices, decided to experiment with the new lending method, where the loan was released directly to the e-CNY digital wallet. Meanwhile, the Agricultural Commerce Bank of Zhangjiagang said this was yet another experiment in the country’s e-CNY trial program.
Two days ago, the People’s Bank of China he said wants to further expand the number of e-CNY test sites, which are currently located in 15 provinces. In its most recent data update on May 31, the central bank recorded 264 million e-CNY transactions totaling CNY 83 billion ($12.29 billion) since inception. Over 4.567 million merchant terminals across China accept e-CNY as payment.
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In addition, 64 companies with a total market capitalization of CNY 560 billion ($82.9 billion) listed on the Shanghai and Shenzhen stock exchanges are exploring blockchain technology. In recent months, China has seemingly increased its focus on developing the central bank’s digital currency, citing benefits for boosting consumer spending after COVID-19 lockdowns crippled the economy. Various e-CNY airdrops are currently underway for participants to claim rewards and redeem on various merchant platforms.