• China’s digital yuan (CBDC) is being used for housing aid public resource transactions.
• Digital yuan has been used for over 5,500 transactions and is also being used to pay experts for evaluations in state-run projects.
• Residents of Nanjing have recently made $2.5 million worth of bidding deposits using the digital yuan wallet.
China’s Central Bank Digital Currency (CBDC)
China’s central bank digital currency (CBDC), the digital yuan, is gaining traction with its adoption in various applications such as housing aid public resource transactions. The Jiangsu Provincial Government Affairs Office has begun using the CBDC in 10 new “application scenarios” while banks and local authorities in the city of Nanjing have begun integrating it into their housing provident fund sector.
Housing Provident Fund System
In China, the housing provident fund (HPF) system is a mandatory mutual aid platform designed to help individuals with home financing. Authorities have issued a set of guidelines that allow market participants to use the CBDC in their HPF operations, allowing them to make use of the coin for settlement, financing, and accounting activities. HPF management centers all across China are now able to make use of online digital yuan settlements and optimized business processes, leading to over 5,500 successful transactions amounting to around $204 million so far.
Digital Yuan Usage Cases
The CBDC is being used as payment tool in “over ten public resource trading centers and sub-centers” within its pilot zone and has found other usage cases such as paying experts to carry out evaluations for state-run projects and settling fees for state-owned property rights transactions or state-owned assets rental deposits. Additionally, Suzhou launched a digital yuan powered loans platform for construction project contractors recently as well.
Yancheng City Public Resources Trading Center
On April 6th 2021, Yancheng City Public Resources Trading Center was able to process over $2.5 million worth of bidding deposits via its digital yuan wallet for state-owned asset transfer projects – indicating further potential growth prospects for this application of CBDCs in China’s economy going forward..
Central People’s Bank Promoting Application
The Central People’s Bank of China has stated that it will actively promote the application of its token in government procurement, project bidding, property rights transactions, and other transaction sectors – affirming the nation’s commitment towards furthering adoption and usage cases related to its own CBDC development efforts .