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A prominent Chinese financial institution, Industrial Bank, is set to incentivize customers using the digital yuan by offering carbon points as it aims to enhance the adoption of its central bank digital currency (CBDC).
According to CICC Online, the bank revealed that verified users of digital yuan wallets can now earn “personal carbon account points” when they utilize its application for transactions with the CBDC.
Leading Chinese Bank: Digital Yuan and Eco-Friendly Finance Are Interconnected
Customers will accumulate carbon points when they conduct retail payments using e-CNY through the app.
Additionally, they can earn points by utilizing digital yuan tokens for “fund purchases and credit card transactions.”
Last year, multiple Chinese banks introduced personal carbon points platforms to promote green finance and reduce emissions.
This initiative aligns with the country’s commitment to achieving carbon neutrality by 2060. Local authorities implement the program to reward individuals for opting for public transportation over personal vehicles.
Citizens can also earn points by participating in tree-planting initiatives and recycling campaigns.
These points can subsequently be exchanged for prepaid travel card credits and shopping vouchers. A representative from the Digital Yuan Department at Industrial Bank stated:
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“Digital RMB wallets and carbon accounts are fostering innovative progress in digital and green finance in China. The integration of [green finance with the digital yuan] will create a synergistic effect. It will contribute to the development of a green economy and a new digital yuan ecosystem.”
The bank indicated its intention to broaden its operations related to green finance and the digital yuan, noting that it has already made significant advancements.
In Fuzhou, the bank reported that it utilized the CBDC to facilitate a first for Fujian Province. Industrial Bank participated in a digital yuan-funded marine fishery carbon sink acquisition.
In Suzhou, the bank announced that it had issued approximately $967 million in digital yuan loans related to green finance.
Hong Kong allows China’s digital yuan to be used in local shops https://t.co/fAyYXDH2TJ pic.twitter.com/BV0wKaqnOZ
— Reuters (@Reuters) May 17, 2024
Industrial Bank claims that its customers have established nearly 7.3 million digital wallets, which have facilitated transactions exceeding $41 billion.
The digital yuan was officially introduced in 2020, initially launching in four cities. The pilot program has since expanded to 27 cities and provinces on the mainland, as well as Hong Kong and Macau.
Industrial Bank is a majority state-owned institution located in Fuzhou, Fujian Province. Last year, it ranked 60th in the Forbes Global 2000.
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