• Chinese banks are rolling out more digital yuan wealth management options.
• Customers can now use their personal digital yuan wallets to purchase securities and receive payments when they sell stocks.
• The rollout of the digital yuan will help foreign visitors with cellphone linked app use and payment troubles.
Chinese Banks Roll Out Digital Yuan Wealth Management Options
Chinese banks will let their customers pay for more wealth management products using the digital yuan, as the nation’s central bank digital currency (CBDC) continues to branch out. The state-owned China Construction Bank (CCB) has teamed up with China International Capital Corporation and the securities firms Orient Securities and Guotai Junan Securities in order to provide services that allow bank customers to “use their personal digital yuan wallets as a bridge” for buying securities and receiving payments when they sell stocks.
Tri-Party Custody Agreements
The financial firms will also provide paywalled research data, securities news services, and reports which may be accessed by those who pay with the digital yuan. Furthermore, CCB said it would “continue to leverage its rich experience in the fields of digital yuan research and development” in order to explore other potential applications of CBDCs, including creating tri-party custody agreements with the digital yuan.
China Securities Regulatory Commission Approval
Last month, the China Securities Regulatory Commission granted approval to the securities provider China Galaxy to launch a variety of wealth management products that accept CBDCs as payment. Through this move, domestic investors can now take advantage of greater convenience when purchasing these products since many transactions no longer require a local bank account or physical cash exchanges.
Digital Yuan Benefits Foreign Visitors
The rollout of CBDCs has made life easier for foreign visitors who are unfamiliar with other forms of payment such as mobile apps or physical cash exchanges in China. For instance, Tim Hortons in Shanghai now accepts CBDCs which helps tourists who do not have access to traditional banking services during their visits abroad.
Continued Expansion Expected
Moving forward, Chinese banks are expected to continue expanding their offerings related to CBDCs as more financial institutions begin offering similar services across different sectors such as retail, hospitality and transportation industries. As such, more individuals around the world may soon find themselves increasingly comfortable making purchases through this revolutionary form of currency.