Chinese Version CBDC (Digital Yuan) Applied to Guangzhou Housing Provident Fund Loans
Luisa Crawford Jun 19, 2023 16:53
The Guangzhou Housing Provident Fund Management Center has successfully implemented the usage of the Chinese version of the Central Bank Digital Currency (CBDC), commonly known as the digital Yuan, for housing provident fund loans.
The Guangzhou Housing Provident Fund Management Center has successfully implemented the usage of the Chinese version of the Central Bank Digital Currency (CBDC), commonly known as the digital Yuan, for housing provident fund loans. On June 19th, a lady received a loan of 480,000 yuan through the digital Renminbi (digital Yuan) wallet app, marking the official launch of the digital Renminbi loan application for housing provident funds in Guangzhou. This achievement represents a significant step towards achieving comprehensive coverage of digital Renminbi applications in the housing provident fund system, including deposits, withdrawals, and loans.
Since the introduction of the digital Renminbi service in August 2022, the Guangzhou Housing Provident Fund Management Center has witnessed a steady increase in transaction volumes. The digital Renminbi offers a simple transaction process, fast processing times, and high levels of fund security. The procedures for handling digital Renminbi transactions are similar to regular transactions, supporting counter, online, and mobile transactions. As of now, the center has successfully processed 6,433 digital Renminbi deposit transactions, amounting to 9.0842 million yuan. Remarkably, 97% of depositors have repeatedly used digital Renminbi for housing provident fund deposits. Additionally, 729 digital Renminbi withdrawal transactions have been completed, totaling 6.6706 million yuan. Leveraging the instant settlement feature of digital Renminbi, 464 depositors were able to make timely repayments on the due date, avoiding late fees. Moreover, the system has assisted 164 depositors whose transactions failed due to issues with their bank cards, enabling them to complete their transactions seamlessly.
Moving forward, the Guangzhou Housing Provident Fund Management Center will continue to promote the digitization of the housing provident fund system. Their focus will be on optimizing public services to meet the diverse and specialized needs of businesses and the public. By enhancing the quality of the housing provident fund industry in Guangzhou, the center aims to improve the well-being of city residents and contribute to the overall economic development of the Guangdong-Hong Kong-Macao Greater Bay Area.
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