China’s JD, ICBC to Launch Digital Yuan Supply Chain Financing Solution
Chinese firms and commercial banks are working on new digital yuan supply chain financing solutions, with a new CBDC smart contract solution set to launch.
Per CICC (via Cnfol), the latest innovation has been developed by JD Technology, in conjunction with the Industrial and Commercial Bank of China (ICBC).
JD Technology is the IT services arm of the e-commerce giant JD.com (also known as Jindong), China’s answer to Amazon.
Both JD and the state-run ICBC have been working with the central People’s Bank of China (PBoC) on the e-CNY pilot for several years.
The companies said they would release a “comprehensive” and “programmable” supply chain financing solution that will make use of digital CNY smart contract technology.
The solution will “provide a full range of services” for first-time corporate digital yuan users, including online wallet opening, fund supervision, and “more efficient” financing controls.
The firms are expected to showcase the solution in Beijing early next month at an “international trade fair” for the financial services sector.
The companies said that the tool will help improve settlement efficiency, boost traceability, and bolster security.
Making use of the e-CNY in supply chain financing will help improve verification, bolster risk identification, and provide credit guarantees for small, medium, and micro enterprises, they claimed.
For financial institutions, the solution will provide “improved trust,” the companies added.
The event will be held at the capital’s Shougang Park September 2-6.
Other firms are also expected to exhibit their own B2B and trade financing-related CBDC solutions at the fair.
JD has been working directly with the PBoC’s Digital Currency Research Institute, the central bank’s digital
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