Source: f11photo
China’s digital yuan has completed another historic CBDC first, with a Taiwan-based firm “successfully” issuing e-CNY bonds.
The offering, an ultra-short-term financing bond, was launched by Xiamen Xiangyu Group (XMXYG), a Mainland Chinese financial firm based in Xiamen that also operates in Taiwan.
The media outlet wrote:
“This bond is the country’s first cross-strait integrated digital [yuan] bond, with the largest issuance scale to date of [around $68 million].”
The funds raised during the issuance were “collected in the issuer’s digital yuan wallet,” and “part of the funds” were “used by XMXYG’s Taiwan [arm].”
Per Jinse, via Anue, the bond issuance was “exclusively underwritten” by Industrial Bank, a majority Chinese state-owned bank based in Fujian Province.
The province is the closest Mainland Chinese region to Taiwan, and is washed by the Taiwan Strait to the east.
China and Taiwan, with Fujian Province shaded in red. (Source: TUBS [CC BY 3.0])Trade and exchange between the province, the rest of Mainland China, and Taiwan are referred to as “cross-strait” relations.
Has China’s Digital Yuan Gone ‘Cross-Strait’ to Taiwan?
The media outlet reported that XMXYG’s “innovative” new method of raising funds from bonds had “further enriched the application scenarios of the digital [yuan].”
And, the outlet continued, the issuance would help China “promote the integrated development of the Strait.”
Visitors to a financial industry fair held in Zhenjiang’s Phoenix Cultural Plaza are shown how to use digital yuan wallets. (Source: yangli20067/Weibo)
Until very recently, the digital yuan’s cross-border credentials were only being put to the test in regions such as Hong Kong and Macau.
But that has all changed in the past few weeks, with Chinese banks and trading firms now looking to secure bridgeheads in other East Asian locations.
Efforts have seen financial institutions and traders explore the notion of Belt and Road Initiative (BRI) CBDC adoption, complete a digital yuan-powered crude oil deal, and establish a Singapore e-CNY partnership.
A dance performance at a promotional event intended to spur digital yuan adoption in Zhenjiang’s Phoenix Cultural Plaza. (Source: yangli20067/Weibo)
Late last month, the Chinese ride-sharing operator Didi Chuxing unveiled a new series of digital yuan-powered payment options for its customers, as big businesses rush to adopt the coin.
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