Financials Author: Yijuan Li May 19, 2022 11:28 PM (GMT+8)

As China ramped up efforts to roll out digital currency, the logistics industry joined to accelerate its digitalization

ICBC

Industrial and Commercial Bank of China (ICBC) (601398) joined hands with Transfar Zhilian (002010) (Chinese: 传化智联) on May 18 to make digital currency accessible in the logistics industry in the eastern city of Hangzhou in Zhejiang province.

This is the first time digital currency can be used in all logistics scenarios in Zhejiang. In addition to logistics companies, the e-CNY will also be used by upstream and downstream companies, drivers, and truck owners, as they have a constant need for payment and settlement with each other.

Specifically, this new form of currency can be used in payment for logistics orders, freight insurance, warehousing, leasing, and parking, among others.

Many merchants in a designated zone in Hangzhou displayed signs such as "Our store supports digital yuan payment."

Shi Xiaohui, vice president of ICBC Hangzhou Branch, said that as the designated operator of e-CNY, ICBC has dozens of related R&D achievements and applications, and the collaboration with Transfar Zhilian aims to build connectivity between banks and firms while expanding the use of e-CNY.

According to Zhou Shengxue, vice president at Transfar Zhilian, more e-CNY logistics applications will be introduced in Zhejiang.

"The use of digital currency will help upgrade Transfar's freight network and help the firms improve the efficiency of capital utilization," said Zhou. "Ultimately, a more efficient financial service to the real economy can be built."

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