The Shenzhen Branch of the People’s Bank of China (PBoC) has collaborated with the Shanghai Gold Exchange to pioneer a gold recycling initiative powered by China’s Digital Yuan CBDC. Other contributors to this project include the Shenzhen Futian District local government, the Shenzhen Branch of the China Construction Bank, and Jinyafu, a gold trading company.
These stakeholders aim to investigate the feasibility of utilising the digital yuan for gold recycling transactions. The technology for this venture is likely to be sourced from Jinyafu, which claims to have established the first digital yuan-integrated gold recycling platform in China. The platform allows users to receive digital yuan payments instantly, just by providing their mobile number or wallet ID.
Gold recycling’s popularity has surged in China over the last ten years. Data from the World Gold Council in 2019 mentioned that recycled gold constituted about 20% of China’s domestic gold supply in 2018, amounting to 146 tons.
On another front, banks and real estate companies are integrating the CBDC for land registry transactions. A report from FJSEN highlights that Fuqing, located in Fujian province, recorded the most significant land registration fee payment via the digital yuan, amounting to nearly $19 million. This transaction was executed through a China Merchants Bank digital yuan wallet.
Fuqing has been a forerunner in adopting CBDC for land registry. The city marked a national milestone earlier, with its Municipal Public Resource Trading Center, Natural Resources and Planning Bureau, and Taxation Bureau completing a significant digital yuan-based land registration fee payment. Fuqing aims to further expand the digital yuan’s applications, hoping to drive “digital financial innovation” and enhance the efficiency of its economic services.
