The cities of Suzhou and Guangzhou, along with the province of Shaanxi, have begun issuing digital yuan loans, Forkast reported.
According to local reports, the Rural Commercial Bank of Zhangjiagang issued a digital yuan loan worth 500,000 yuan (US$73,997) to an unnamed business in Suzhou to fill the capital turnover gap.
However, banks in Suzhou have been offering business and personal digital yuan loans since June, with amounts typically ranging from US$10,359 to US$221,992. The highest loan amount offered via digital yuan was worth US$295,989, which was disbursed by the Bank of Suzhou to a local machinery manufacturing company.
Bin Liu, director of the Shanghai Pudong Reform and Development Research Institute, said that regulators can track and monitor any illegal use of loan funds in digital yuan. The virtual currency also enables regulators to check the operating and repayment capabilities of firms by monitoring fund flows.
Digital yuan transactions hit US$12.3 billion in the first five months of 2022. As of the end of May, over 4.5 million commercial outlets in China accept digital yuan as a payment option.
Currency converted from Chinese yuan to US dollar: US$1 = 6.76 yuan.
See also: China is embracing Web3 without crypto
Editing by Miguel Cordon and Lorenzo Kyle Subido
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