Last week, China’s Bank of Communications issued its first business loans using the country’s central bank digital currency (CBDC) as part of the latest digital yuan trials. Despite giveaways and other incentive programs, China’s CBDC pilot has seen moderate adoption. It continues to expand tests into new cities and broaden the use cases.
According to Changsha Evening News, on May 12, three small and medium enterprises (SMEs) were selected in China’s Hunan province for a digital yuan pilot for “inclusive loans”. The test was conducted in Changsha, Hunan’s capital, and involved companies from the science and technology sector receiving funds totaling 583,000 yuan ($83,300).
Changsha was one of the earlier cities involved in CBDC tests as part of China’s second set of pilot cities. There were only five participating regions when the original testing locations were announced in 2020, but that number has expanded rapidly.
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