financial service provider in China Will allow citizens to pay for money products using digital yuanIn a new development for the country’s central bank digital currency (cbdc,
According to Chinese media outlets Securities TimesThe China Securities Regulatory Commission (CSRC) has officially approved “the first application scenario for the digital yuan in the securities market.”
The CSRC is the main regulator of the Chinese securities industry.
The regulator’s decision means that Chinese investors will soon be able to use CBDCs to buy public funds.
They will also be able to buy other “financial products” using the coin.
The move also means that investors will be able to make e-CNY-powered investments through their smartphones.
Will Chinese citizens be able to buy securities with the CBDC?
Beijing has yet to set a full rollout date for this new “function” of the CBDC.
And it will likely start with a pilot for “qualified users.”
But the CSRC is expected to move forward with an experimental region-wide rollout.
This will eventually allow securities traders and fund investors to choose CBDCs as a payment option in their trading apps.
The regulator said that using the digital yuan would provide a number of benefits to investors.
These include the ability to “place orders 24/7” outside of normal trading hours.
The CSRC also claimed that digital yuan-powered securities trading and fund investments would be “fully traceable”.
It says whether CBDCs can also be used to create investment smart contracts that “cannot be illegally forged or copied.”
More Digital Yuan Applications to Roll Out
elsewhere, the economic daily reported that firms in the Chengdu Science Park (a hub for IT companies in the city) have integrated a digital yuan solution that allows employees to forgo ID smart cards in favor of a CBDC wallet.
The solution allows staff members of companies in the park to access elevators, open gates and doors using their wallets.
They can also use the same wallet to pay in the park.
The initiative was launched in conjunction with the Industrial and Commercial Bank of China, one of the largest state-owned commercial banks in the country.
Last week, some universities in the experimental sector said they were also adopting the digital yuan for use. In “every” aspect of the “campus life” of the students.
The digital yuan wallet will similarly allow students to access buildings and prove their identity on their campuses.