Digital Yuan Set for Wealth Management Debut

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Source: PVL/Adobe

Central People’s Bank Of China (PBOC) digital yuan is set to expand into the world of wealth management – and break new ground in education as well.

According to Shanghai Securities NewsChina Galaxy Securities, a brokerage and investment bank listed on the Hong Kong Stock Exchange, will provide digital yuan-paying customers with access to over-the-counter wealth management products.

The company will introduce the products to select customers in Beijing and other parts of the Digital Yuan Pilot Zone. But, eventually, customers across the country will be able to put their digital yuan holdings into public funds and other investment vehicles.

The firm has close to 1.3 crore brokerage clients. Further steps could see the company – so far the only brokerage permitted by the PBOC to deal with the digital yuan in this way – offer securities-buying options to digital yuan users.

Wealth Management, Securities…and Now Education Firsts for the Digital Yuan

To zhejiang onlineThe education-related effort is a collaboration between the Zhejiang Provincial Finance Department, the Hangzhou Gongshu District Budgetary Authority, and a branch of the Industrial and Commercial Bank of China — one of China’s largest domestic banking players. The bank has been particularly active in the digital yuan pilot space.

The bodies have called the “digital yuan non-tax payment channel”. This means that citizens can use this channel to pay local authorities for services outside the scope of local taxation – such as kindergarten tuition fees.

Separate channels already exist in Hangzhou for citizens who want to pay their local taxes using the digital yuan.

The paper cited the example of the Kyoto Experimental Kindergarten in Hangzhou – which has added digital yuan payment options to its payment platform. Previously, parents had to pay the fee through bank transfer or Alipay e-payment network.

This news comes days after Chinese e-commerce behemoth Meituan announced Offering Digital Yuan Tokens and Offline “Hard” Wallets To celebrate the Lunar New Year. The company is now one of many promoting the coin as a payment instrument on its platform.

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