First Digital Yuan Land Transfer Executed in Chinese Province of Fujian

The Fuzhou University of International Studies and Trade paid 51 million yuan in the first land transfer fee paid in the digital yuan CBDC.

The province of Fujian in China has executed its first digital yuan land transfer, according to reports published on Oct. 9. The transfer saw the Fuzhou University of International Studies and Trade pay 51 million yuan for a plot of land through the Agricultural Bank of China.

The transfer is the first of its kind in the province and marks yet another development for China’s central bank digital currency (CBDC). The Fujian branch of the Agricultural Bank of China has also executed tax payments in Fujian using the CBDC, the first offshore inclusive financial service point, and “many other initial demonstration scenarios.”

The city’s officials are working towards increasing the use of the CBDC, saying that ten policy measures to accelerate its promotion are being put in place. The province plans to add additional scenarios to the use cases in the near future.

Authorities in China recently shut down a money laundering operation worth 200 million yuan in Fujian that involved the CBDC. The funds were used for “overseas gambling, electronic fraud, and other criminal activities.”

Digital yuan gaining ground

China has been rapidly expanding its CBDC pilot program, adding more provinces to the list. In July 2022, it was reported that over 264 million digital yuan transactions were processed. The number of merchant stores making use of the digital yuan has crossed 4.5 million.

The government is keen on bringing the CBDC to the whole of the country, with the unification of norms and standards a key focus. There are already at least 15 provinces involved in the pilot, and that figure will likely only increase exponentially. So far, the volume has crossed $15 billion in 2022 — and that figure will increase substantially going forward.

Blockchain sector in China pumping

The digital yuan has quickly become one of the most recognized CBDCs. Other countries have noted the use and have made their thoughts on the matter known. With the increased adoption, China has promised to protect privacy.

As the digital yuan has been picking up pace, China has also been applying for many patents. The country ranks first when it comes to global blockchain patent applications — but only 19% have been approved.

Meanwhile, other countries are also working on CBDCs. South Korea, India, and Sweden have all shown strong interest in the technology.