A commercial bank in China has rolled out a novel rewards program utilizing the digital yuan, where individuals earn CBDC tokens for recycling waste.
As reported by Danzong through Xinhua, the Qingdao Branch of the Bank of Communications has introduced this unique CBDC-driven reward system.
This innovative program was launched in partnership with the city’s residential waste management service, Jiaoyun Beijie.
Historically, certain local governmental initiatives have attempted to incentivize citizens by offering them “points” for participating in recycling initiatives.
The innovative approach in Qingdao will offer residents rewards in the form of the nation’s digital currency, rather than traditional points.
When inhabitants correctly dispose of items in the recycling bins designated by the local government, the waste management company will automatically enroll them in a lottery.
Randomly chosen victors from this draw will be granted “modest” amounts of the digital currency.
These digital rewards will then be directly deposited into the recipients’ digital yuan wallets.
Digital Yuan + Carbon ‘Points:’ New Ground for China’s CBDC?
The company believes that this initiative will not only promote the proper utilization of recycling programs but also enhance the city’s “green household initiatives” and overall environmental conservation efforts.
The belief is that such a project will pave the way for a more sustainable and “low-carbon ecological system” within Qingdao.
Expressing its vision, the bank’s local branch in Qingdao aspires to transform waste recycling into a popular movement and foster a culture of “low-carbon living.”
Furthering this commitment, the Qingdao division of the bank articulated plans to more deeply intertwine the digital yuan with its forthcoming “inclusive finance” and “green financing” offerings.
As a side note, the Bank of Communications stands as one of the most venerable banking institutions in China.
The Bank of Communications has significant state influence, with Chinese governmental entities owning about 50% of it. Furthermore, the global banking titan HSBC holds a noteworthy 19% stake in the bank.
The bank has been notably proactive in the realm of CBDC loans. Its Yuzhou branch recently granted an e-CNY loan to a local IT firm, which amounted to a staggering $700,000 million e-CNY. Furthermore, in May of this year, it took the lead in providing Hunan Province’s first CBDC loan to a budding tech startup, disbursing approximately $87,000 in digital yuan.
In 2019, China embarked on an initiative to champion “zero-waste cities” and amplify recycling initiatives. The overarching goal was to drastically minimize the volume of waste directed to landfills.
Just last week, an announcement from JD Technology — the tech subsidiary of the colossal e-commerce platform JD.com (also referred to as Jindong) — caught attention. They revealed a collaboration to co-introduce a digital yuan supply chain financing solution, partnering with another prominent state-affiliated bank, the Industrial and Commercial Bank of China (ICBC).
Simultaneously, the Bank of China, another state-sponsored commercial bank, is in the process of developing Hong Kong-focused e-CNY solutions, again in collaboration with JD.
