China introduces digital Yuan in real estate sector
Apr 01, 2022
Beijing [China], April 1 : China has introduced the use of digital Yuan in the real estate sector with payments worth around USD 87,000 for 3 construction projects.
The payments were made through the digital wallets of the Industrial & Commercial Bank of China and China Construction Bank, reported local media.
The move comes after China witnessed a decline in the real estate boom. Real estate giant Evergrande is finding it difficult to pay its debts in the face of government policies designed to curb the boom.
The increased use of the digital Yuan in the real sector is likely to enhance the transparency of fund flows, thereby increasing Government's control over the sector, reported local media.
Furthermore, a Chinese company Zhengyuan Data System Engineering is currently working on the application of digital Yuan in the upcoming (September) Asian Games 2022 to be held in Hangzhou of Zhejiang province.
China has already used the digital Yuan at the venues of the recently held Winter Olympics 2022, where it was one of the approved modes of payment.
As of 2021, the cumulative transactions through digital Yuan have reached USD 13.68 billion with 261 million users, reported local media.
Apart from this, Hong Kong Monetary Authority plans to set up a pilot program for the use of digital Yuan for shopping and dining, making Hong Kong the first offshore city to use digital currency outside the mainland.
