💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

China launches first industrial park to advance digital yuan ecosystem

Published 13/10/2023, 02:07 pm
© Reuters.  China launches first industrial park to advance digital yuan ecosystem

China has inaugurated its first industrial park committed to the growth of its central bank digital currency (CBDC), also known as the digital yuan or e-CNY.

Situated in Shenzhen's Luohu district, adjacent to Hong Kong, the park aims to bolster the digital currency's ecosystem through a series of initiatives involving payment solutions, smart contracts and hard wallets.

On October 11, the Luohu district government revealed plans that include up to three years of free rent for residents and financial incentives for commercial banks and startups to set up in the area.

Specifically, commercial banks could be entitled to up to 20 million yuan (US$2.7 million) for locating there, while startups could secure up to 50 million yuan (US$6.9 million).

First residents

Among the inaugural residents of the industrial park are payment card producers Hengbao and Wuhan Tianyu Information, as well as payments processor Lakala Payment.

Zeng Zhaoxiang, the executive deputy director of Wuhan Tianyu Information, told China Daily, “We hope to achieve synergistic effects in the industrial chain and jointly promote the development of the park."

Despite being in its pilot stage and accepted by 5.6 million merchants across 26 cities, the digital yuan has seen considered slow adoption, with 261 million digital wallets created as of 2022.

Nonetheless, the government's persistent encouragement and technological developments are poised to stimulate growth in usage.

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.