Chinese Banks Explore Digital RMB Potential in Insurance and Investment – Bits Media

Chinese banks Bank of Communications (Bocom) и China Construction Bank (CCB) began to explore the possibility of using the digital currency of the People's Bank of China (NSC) in the field of insurance and investments.

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local media reports, leading state-owned banks have launched a pilot Program, Within the framework of which they will explore the options for using the state digital currency for the purchase of insurance products and investments in investment funds. Bocom and CCB count, that this will bring digital yuan outside daily retail payments.

China Construction Bank reported, that he began to cooperate with the giant of the electronic commerce JD.com and the Shanghai Tiantian Fund Distribution platform, owned by the supplier of financial data East Money. Thanks to this partnership, Digital yuan holders will be able to invest in online funds.

“We conduct research and participate in the development of the digital currency of the Bank of China with 2017 of the year. We count, that digital yuan will become an important component of our payment system and will generally increase the efficiency of payments ”, -said the executive vice president of CCB Zhang Min (Zhang Min).

CCB has already opened a total 8.42 Milln wallets for digital yuan, 7.23 million of which are designed for individual users and 1.19 Milln - for companies. As of June 2021 of the year, China Construction Bank has already spent about 28.5 million transactions for the total amount 18.9 billion yuan ($2.9 billion) using digital currency NBK.

Executive Vice President of Bank of Communications Qian Bin (Qian Bin) added, that the bank also did a large amount of work, to ensure the stable functioning of the digital yuan system. Now the bank has focused on the study of scenarios for the use of state stablecoin in the field of insurance.

“The digital currency of the Central Bank of China is a form of legal payment. therefore, Being a commercial bank, We are obliged to contribute to the development and increase in the liquidity of the currency ", - said Qian.

In July, the NBK published a white book of digital yuan. According to the document, One of the main characteristics of China’s state cryptocurrency will be the possibility of its programming using smart contracts.