China Uses Digital Yuan in Supply Chain Financing

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By BitcoinWiki News

Key Takeaways:

– Chinese banks want to use digital yuan-powered smart contracts in their operations
– Agricultural Bank of China will work with Luzhou Laojiao, a traditional alcohol distillery
– The solution was exhibited at the China Digital Finance Forum
– The solution aims to address difficulties in obtaining loans for small and micro enterprises, supervising bank loan funds, and issues with downstream dealers
– The Agricultural Bank has used digital yuan smart technology developed by the People’s Bank of China
– The solution provides convenient loan services for regional Luzhou Laojiao affiliates
– Funds in the system are fully traceable and payments are concluded automatically
– The solution will provide meaningful data support for enterprise operation and management
– The Agricultural Bank plans to expand the use of e-CNY smart contracts with government organs, businesses, and researchers
– Postal Savings Bank of China launched the nation’s first prepayment product using digital CNY smart contracts
– Tencent announced the launch of a digital yuan smart contract offering for small, medium, and micro-sized enterprises.


Chinese banks, including the Agricultural Bank of China, are showing interest in using digital yuan-powered smart contracts for supply chain financing. The Agricultural Bank of China is working with Luzhou Laojiao, a traditional alcohol distillery, to develop a solution using the central People’s Bank of China’s (PBoC) digital yuan smart technology. The solution aims to address difficulties faced by the distillery in obtaining loans for small and micro enterprises, supervising bank loan funds, and managing downstream dealers. The digital yuan smart contract supply chain product will provide convenient loan services for Luzhou Laojiao’s regional affiliates. The solution allows for real-time traceability and automatic payment processing. The Agricultural Bank of China plans to continue leveraging the advantages of the digital yuan and expand its use of smart contracts to empower enterprises. Other Chinese banks and companies, such as the Postal Savings Bank of China and Tencent, have also launched digital yuan smart contract offerings.

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