Major Chinese Bank to Reward Digital Yuan Users with Carbon Credit Incentives
Industrial Bank, a prominent Chinese bank, has unveiled its plan to offer carbon points as rewards for customers who use the digital yuan, as part of its efforts to promote the adoption of the Central Bank Digital Currency (CBDC). According to CICC Online, verified digital yuan wallet users can now earn “personal carbon account points” when they use the bank’s app to make purchases with the CBDC.
The bank aims to align the use of the digital yuan with green finance initiatives. Customers will accumulate carbon points when they make e-CNY retail payments through the app. Additionally, they can earn points by using digital yuan tokens to make fund purchases and credit card payments. This initiative follows the introduction of personal carbon points platforms by several Chinese banks last year, aimed at promoting green finance and reducing emissions.
The program is a crucial part of China’s commitment to achieving carbon neutrality by 2060. Local governments utilize the program to incentivize the use of public transportation instead of private cars, rewarding commuters with carbon points. Citizens can also earn points by participating in tree-planting campaigns and recycling initiatives. These points can then be exchanged for prepaid travel card credits and shopping vouchers.
The Digital Yuan Department at Industrial Bank expressed its intention to expand its green finance-digital yuan operations, highlighting its successful endeavors in this area. In Fuzhou, the bank utilized the CBDC to facilitate the first-ever marine fishery carbon sink purchase in Fujian Province. Furthermore, in Suzhou, the bank issued digital yuan green finance-related loans amounting to approximately $967 million.
With nearly 7.3 million digital wallets opened by its customers, Industrial Bank has facilitated over $41 billion worth of transactions. The digital yuan was officially launched in 2020 and has since been rolled out in 27 mainland cities and provinces, as well as in Hong Kong and Macau.
Industrial Bank, headquartered in Fuzhou, Fujian Province, is a majority state-owned bank. It ranked 60th in the Forbes Global 2000 list last year.
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