China’s Shandong Province has implemented a digital yuan loan program for entrepreneurs, marking a significant step in the integration of digital currency into regional business practices. The capital city of Jinan has introduced an online system called “Ji Dan – Entrepreneurial Loan” to streamline access to capital for small businesses, with the loan amount capped at 200,000 yuan (~$28,000). This initiative is the first of its kind in Shandong and highlights the advantages of the digital yuan, such as fast transactions and traceability.
The digital currency has also been a prominent topic of discussion during the ongoing 2024 National People’s Congress and the Chinese Political Consultative Conference. Delegates and members have put forward suggestions for the phased implementation of the central bank digital currency (CBDC), emphasizing its legal tender status and voluntary use. They have also proposed clarifying the relationship between the digital yuan, cash, and bank deposits to ensure smooth exchange mechanisms.
Furthermore, recommendations were made to expand the application of the e-CNY in international trade and cross-border capital flows. One suggestion was to allow digital yuan accounts to connect with foreign banks for easy conversions and usage through mobile and computer applications, aiming to enhance the adoption of the yuan in global transactions. This signifies the potential role of the digital yuan as a significant currency for international dealings, as highlighted by Zhou Chunling, the chairman of Heilongjiang Yong’an Group.