China trials digital currency through SME loans

Loans have been granted to small and medium enterprises (SMEs) in the form of digital yuan in at least three Chinese cities. This is in line with Beijing’s plan for the e-CNY, which is expanded beyond retail consumer use to cover corporate loans and taxes. In Suzhou in eastern Jiangsu province, a concrete producer borrowed RMB1.5m (USD222,000) from the Agricultural Bank of China with the proceeds to be used to pay suppliers in e-CNY. A plastic products maker in Xiamen in southeastern Fujian province, earlier this month also borrowed CNY90,000 in digital format from Chengtai Microcredit, a micro-credit agency. A hospitality company in Qingdao, Shandong province, borrowed the same amount from online lending platform Guo Sheng Inclusive Finance. Shanghai-based construction materials manufacturer Zhongxiang also obtained CNY2.8m in e-CNY through factoring.