<![CDATA[<figure class="image"><img src="https://cimg.co/news/126450/333893/adobestock-443756182-edit.jpeg" alt="The exterior of a branch of the Agricultural Bank of China." srcset="https://cimg.co/news/126450/333893/responsive-images/adobestock-443756182-edit___media_library_original_1250_810.jpeg 1250w, https://cimg.co/news/126450/333893/responsive-images/adobestock-443756182-edit___media_library_original_1200_778.jpeg 1200w, https://cimg.co/news/126450/333893/responsive-images/adobestock-443756182-edit___media_library_original_900_583.jpeg 900w, https://cimg.co/news/126450/333893/responsive-images/adobestock-443756182-edit___media_library_original_720_467.jpeg 720w, https://cimg.co/news/126450/333893/responsive-images/adobestock-443756182-edit___media_library_original_600_389.jpeg 600w, https://cimg.co/news/126450/333893/responsive-images/adobestock-443756182-edit___media_library_original_300_194.jpeg 300w" width="1250" class="content-img"><figcaption>Source: J_News_photo/Adobe</figcaption></figure>More <a href="https://cryptonews.com/tags/china">Chinese</a> banks want to use <a href="https://cryptonews.com/tags/digital-yuan">digital yuan</a>-powered <a href="https://cryptonews.com/guides/what-is-a-smart-contract.htm">smart contracts</a> in their operations, and hope to use the <a href="https://cryptonews.com/tags/CBDC">CBDC</a> in the financing of supply chains.Per Xinhua (via the <a href="http://finance.people.com.cn/n1/2023/1016/c1004-40096106.html" rel="nofollow">People&rsquo;s Daily</a>), the Agricultural Bank of China will work on a solution with Luzhou Laojiao.The latter is a traditional alcohol distillery based in Luzhou, Sichuan Province, China.<figure class="image"><img src="https://cimg.co/news/126450/333894/sju.jpg" alt="A selection of Chinese alcoholic beverages on sale in a store in Hong Kong, including Luzhou Laojiao baijiu." srcset="https://cimg.co/news/126450/333894/responsive-images/sju___media_library_original_576_768.jpg 576w, https://cimg.co/news/126450/333894/responsive-images/sju___media_library_original_300_400.jpg 300w" width="576" class="content-img"><figcaption>A selection of Chinese alcoholic beverages on sale in a store in Hong Kong, including Luzhou Laojiao baijiu. (Source: Hwuongkom Yueiompua [<a href="https://creativecommons.org/licenses/by-sa/4.0/deed.en">CC BY-SA 4.0</a>])</figcaption></figure>The firms exhibited their CBDC-based solution at the 2023 China Digital Finance Forum in Beijing.Luzhou Laojiao explained that when working dealers across the country, it faces the &ldquo;three&rdquo; supply chain-related &ldquo;difficulties&rdquo; that CBDC-powered solutions will help fix.Namely, these are difficulties in obtaining loans for small and micro enterprises, problems with supervising bank loan funds, and issues pertaining to &ldquo;downstream dealers.&rdquo;The bank says it has used digital yuan smart technology pioneered by the central People&rsquo;s Bank of China (PBoC)&rsquo;s Digital Currency Research Institute.This has helped the Agricultural Bank to &ldquo;develop a digital yuan smart contract supply chain&rdquo; product.The product will reportedly &ldquo;provide convenient loan services&rdquo; for regional Luzhou Laojiao affiliates.The firms said the solution lets the distillery&rsquo;s outlets &ldquo;obtain loan funds within a few minutes.&rdquo;Banks, meanwhile, stand to benefit from ensuring funds stay in a &ldquo;closed-loop&rdquo; system.The funds are fully traceable, and payments are concluded automatically, the parties claimed.<h2 id="china-banks-to-use-digital-yuan-in-supply-chain-financing">China: Banks to Use Digital Yuan in Supply Chain Financing</h2>The Agricultural Bank said its solution provides &ldquo;[meaningful] and powerful data support for enterprise operation and management,&rdquo; which will &ldquo;help Luzhou Laojiao rapidly develop its sales network.&rdquo;<figure class="image"><img src="https://cimg.co/news/126450/333895/abofc.jpg" alt="A branch of the Agricultural Bank of China in the city of Huanggang, China." srcset="https://cimg.co/news/126450/333895/responsive-images/abofc___media_library_original_576_768.jpg 576w, https://cimg.co/news/126450/333895/responsive-images/abofc___media_library_original_300_400.jpg 300w" width="576" class="content-img"><figcaption>A branch of the Agricultural Bank of China in the city of Huanggang, China. (Source: soramimi [<a href="https://creativecommons.org/licenses/by-sa/4.0/deed.en" rel="nofollow">CC BY-SA 4.0</a>])</figcaption></figure>The bank said it would look to &ldquo;continue to leverage the advantages of the digital yuan&rdquo; under &ldquo;the guidance of the PBoC.&rdquo;And it said it would continue to expand its use of e-CNY smart contracts to &ldquo;empower enterprises.&rdquo;The bank also plans to use the digital fiat with &ldquo;government organs, businesses, and researchers.&rdquo;In September, the state-run Postal Savings Bank of China <a href="https://cryptonews.com/news/chinese-banks-firms-make-digital-yuan-smart-contract-progress.htm">&ldquo;officially&rdquo; co-launched the nation&rsquo;s first &ldquo;prepayment product&rdquo; to use digital CNY smart contracts</a>.And earlier this month, the Chinese tech firm Tencent <a href="https://cryptonews.com/news/chinese-it-giant-tencent-launches-digital-yuan-smart-contract-services.htm">announced the launch of a digital yuan smart contract offering for small, medium, and micro-sized enterprises</a>.
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Chinese Bank Rolls Out Digital Yuan Supply Chain Financing Solution

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