State-owned Chinese banks test the digital yuan for purchases of financial products

State-owned Chinese banks Bank of Communications and China Construction Bank, in cooperation with asset managers and insurers, will test the possibility of using the digital yuan when buying financial products.

Chinese lenders Bocom, CCB explore use of e-yuan digital currency for buying funds, insurance products https://t.co/9puac89CZq— South China Morning Post (@SCMPNews) August 31, 2021

If successful, DCEP will gain additional use cases. The project was originally aimed at easing retail payments.

The Shanghai Tiantian Fund Distribution platform, owned by the financial-services provider East Money, and the e-commerce giant JD.com are partners of China Construction Bank. Bank of Communications did not disclose this information.

As of writing, China Construction Bank had processed 28.5 million transactions totaling 18.9 billion yuan (about $2.9 billion) involving DCEP. The lending institution opened 7.23 million digital wallets for retail clients and 1.19 million for corporate clients.

Bank of Communications carried out 6.3 million transactions with the digital yuan worth 2.5 billion yuan (about $387 million).

Earlier in China used the digital yuan to pay a commission for the delivery of goods under a futures contract.

The Chinese ‘People’s Daily’ reported that the PRC governmentto create an international clearing and settlement network for mobile payments using DCEP.

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