{"id":40557,"date":"2023-07-26T03:23:56","date_gmt":"2023-07-26T07:23:56","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/chinese-bank-launches-cbdc-bulk-commodity-services\/"},"modified":"2023-07-26T03:23:58","modified_gmt":"2023-07-26T07:23:58","slug":"chinese-bank-launches-cbdc-bulk-commodity-services","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=40557","title":{"rendered":"Chinese Bank Launches CBDC Bulk Commodity Services"},"content":{"rendered":"
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Banks in China are looking to adopt the digital yuan in more of their operations, and have launched the nation\u2019s first central bank digital currency (CBDC)-powered settlement service for bulk commodity spot clearing.<\/p>\n

Per JRJ, Industrial Bank, a Fuzhou-based joint-stock commercial bank, has launched the country\u2019s first e-CNY settlement service for bulk commodity trading firms at the Shanghai Clearing House.<\/p>\n

The move comes a month after the Shanghai Clearing House announced its intention to start using the digital yuan in its operations.<\/p>\n

Chinese firms are some of the world\u2019s most active commodities buyers.<\/p>\n

And the Global Times last month reported that officials have claimed that adopting the digital yuan in clearing houses will \u201cmake cross-border settlement of bulk commodities more secure.\u201d<\/p>\n

They also think the e-CNY will make the process \u201cfaster, more efficient, and more cost-effective for financial institutions and service providers.\u201d<\/p>\n

Seven other banks also plan to begin offering similar services, JRJ noted.<\/p>\n

The bank said that it had cooperated with the Shanghai Clearing House \u201cto integrate digital yuan payment methods into the clearing and settlement process for commodity spot transactions.\u201d<\/p>\n

And it said this would \u201cprovide customers with more convenient and improved settlement transaction options.\u201d<\/p>\n

Industrial Bank began working with the Shanghai Clearing House on bulk commodity spot clearing in 2022.<\/p>\n

It already processed some $3.6 billion worth of transactions in the sector.<\/p>\n

A bank spokesperson said:<\/p>\n

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\u201cIn the future, we will continue to explore and expand applications of the digital yuan for commodity transactions.\u201d<\/p>\n<\/blockquote>\n

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Chinese Banks Step up CBDC Adoption Drive<\/h2>\n

The central People\u2019s Bank of China (PBoC) is also welcoming more regional banks into its pilot.<\/p>\n

The Xinbao Observer (via Sohu) reported that the Tianjin Binhai Rural Commercial Bank\u2019s Chengxi branch, in Qinghai Province, issued the bank\u2019s first-ever personal digital yuan loan to one of its customers.<\/p>\n

The bank this month issued a loan of around $14,000 worth of e-CNY to a Chengxi-based individual surnamed Cheng.<\/p>\n

Last month, banks announced the rollout of a number of wealth management products that may eventually allow Chinese traders to buy securities with the digital yuan.<\/p>\n

The state-owned commercial banking firm the Bank of China joined the PBoC\u2019s Hong Kong cross-border payments pilot in March.<\/p>\n

And earlier this month, government-owned telecoms firms stepped up their own involvement in the CBDC project with the launch of SIM card-based offline wallets.<\/p>\n<\/p><\/div>\n