A Chinese commercial bank has introduced a program using digital yuan to incentivize recycling. It rewards citizens with digital currency tokens when they participate in waste recycling.
Danzong, through Xinhua, reported that the Bank of Communications’ Qingdao Branch introduced a rewards program powered by the CBDC. The bank partnered with Jiaoyun Beijie, the city’s waste disposal service provider, to unveil this innovative solution.
Unlike prior programs that offered “points” for recycling, Qingdao now provides the nation’s digital fiat currency as an alternative incentive. Residents using specified recycling bins enter a draw with randomly selected winners receiving digital yuan in their wallets.
Chinese Commercial Bank Initiatives: Recycling and Digital Yuan Integration
This initiative encourages correct recycling practices and backs green household initiatives and environmental projects in the city. Its ultimate aim is to establish an eco-friendly, low-carbon system in Qingdao.
The Qingdao bank branch is dedicated to expanding recycling and promoting a lower carbon footprint lifestyle. Furthermore, it plans to integrate the digital Chinese Yuan (CNY) more deeply into its inclusive finance and green financing offerings.
The Bank of Communications, among China’s oldest banks, has partial state ownership. HSBC, a global banking giant, holds a 19% stake in the bank.
It actively participates in CBDC loans, with its Yuzhou branch recently granting a substantial e-CNY loan of $700 million to a local IT firm. In May, it issued Hunan Province’s first CBDC loan, providing around $87,000 in digital yuan to a tech startup.
China’s “Zero-Waste Cities” and Digital Yuan Collaborations
In 2019, China initiated efforts to create “zero-waste cities” and implement recycling initiatives, aiming to drastically reduce landfill waste.
Additionally, JD Technology, the IT services division of the e-commerce giant JD.com (also known as Jindong), recently announced its collaboration with another major state-owned bank, the Industrial and Commercial Bank of China (ICBC). Together, they aim to introduce a digital yuan supply chain financing solution.
Moreover, the Bank of China, another state-owned commercial bank, is partnering with JD on e-CNY solutions, with a specific focus on the Hong Kong market.
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