Several of China's largest banks, Bank of Communications and China Construction Bank, have announced partnerships with fund supervisors and insurance firms to explore the possibility of using the e-CNY to finance and purchase insurance products.
State banks of the PRC are accumulating forces to further promote the national token, investigating different options for its usage by the citizens of the country. They are now looking to provide e-CNY equivalent payments to areas of the economy that go ahead retail.
Based on the paper, CCB partnered with Shanghai Tiantian Fund Distribution to test the potential of digital RMB financing in local online funds. Among those who participated in this experiment, one of the largest trading platforms in China, JD.com, was also mentioned.
Zhang Min, President of CCB, stated that they've been involved in the creation of the e-CNY and the study of its application since 2017, as they are confident that this currency will become an integral part of the country's payment system. This optimism about the future of the digital yuan on the part of the bank is because it significantly increases the efficiency of payments and makes the transfer of funds much more convenient.
To date, the bank has opened more than 8.42 million digital yuan wallets, of which 7.23 million are for individuals and the remaining 1.19 million are for various businesses. At the same time, the total number of transactions involving e-CNY as of June 2021 was 28.5 million, worth 18.9 billion yuan, equivalent to $2.9B.
Qian Bin, vice president of BoCom, announced they are investigating the idea of increasing the e-CNY to insurance products and fund managers. He thinks that the main task of the bank today is to promote further growth and increase the liquidity of the national token. However, he did not specify which fund managers and insurers he intends to cooperate with.
The results of BoCom were more modest than its counterpart 6.3 million transactions in the equivalent of digital yuan worth 2.5 billion yuan (about $386.7M).
Beijing has already tested the national token in 11 districts and cities. In the future, they intend to integrate e-CNY during the Winter Olympic Games in February 2022. By the end of June, total spending in digital yuan equivalent was over 34.5 billion, with 70.75 million completed transactions.
As banks continue active checks, the digital yuan is bringing the second-largest economy closer to transforming into a completely cashless society through the massive proliferation of a new means of payment. Recall that one of the main goals of the government at the start of the e-CNY project was to oppose monopoly in the face of Alipay and WeChat Pay, covering more than 90% of the total number of payments in the PRC.