Two Chinese banks are expanding their pilot programs for the digital national fiat. The state-owned financial institutions have revealed they are aiming to allow digital yuan holders to acquire investment funds and insurance products using the new currency.
Chinese Banks Partner With Fund Managers and Insurers in Search of Digital Yuan Use Cases
China Construction Bank (CCB) and Bank of Communications (Bocom), two leading state-run banks, are increasing efforts to find new applications for the central bank digital currency (CBDC) issued by the People’s Bank of China. The lenders are now working with investment fund managers and insurance companies as part of their digital yuan (e-CNY) pilot projects.
The cooperation aims to facilitate the use of the digitalized fiat currency for the purchase of investment funds and insurance products, the South China Morning Post (SCMP) reported. The participants hope this could become another use case for the e-CNY “beyond the low value, daily retail payments,” as the publication