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China has been working intensively on its digital yuan for its population. The nation has pushed ahead with its plans of using e-CNY beyond the retail consumer.
e-CNY carries zero service charge
According to a report, the digital yuan has been used to grant loans to small and medium enterprises in the three different cities of the country. A concrete producer from the eastern Jiangsu province borrowed around 1.5 million yuan (approx $222,000) from the Agricultural Bank of China. This loan will be paid in e-CNY to the borrower.
It is reported that it is hard for small businesses to acquire loans from the agencies as they carry around 1% to 3% fees with them. However, this transaction was faster while it did not carry any service charge.
It added that a Shanghai based construction materials manufacturer acquired 2.8 million yuan (approx $417,014) in e-CNY. The borrower mentioned that they would continue to discover the use of digital currency. The report highlight that not only loans but China’s digital token has also been used for paying taxes.
Digital yuan users double in a year
Last month, users were given e-CNY vouchers worth 30 million yuan (approx $4.4 million). It was done in partnership with delivery service company Meituan. Around 261 million digital yuan users were recorded by the end of December 2021. The number of users has increased by almost double from October 2020.
