As per local media outlet Sina Finance, the raised funds were given as loans to small and micro-sized enterprises in China to back their sustained economic development.
At the end of September, the Bank of China disbursed roughly 404 billion yuan ($57.70 billion) to 410,000 small and micro enterprise clients, reflecting a growth of 35% on y-o-y basis.
Notably, micro-enterprises usually have less than 10 employees, while small firms have as many as 50 employees. The development has come at a time when the Chinese government is backing digital economy in a big manner.
Back in December, Forkast Insights, the research wing of Asia-based Forkast, made a detailed elaborate study of how blockchain technology is incorporated in China.
The report indicated that blockchain technology is undergoing huge development in China and has a series of “real-world, practical use cases that are far beyond the experimental stage.”
China’s blockchain development is forecast to record compounded annual growth rate of 65.7% between 2018 and 2023. The sector is expected to see an investment of over $2 billion by the end of 2023.
In the meantime, China’s central bank, the People’s Bank of China, is moving forward with the plan to roll out a digital token to compete with the US dollar.
The bank intends to carry out the first live trial of its CBDC (central Bank Digital Currency). The initial trial for the CBDC is planned to be held in city of Shenzhen before the end of this year, with alternative venue being Suzhou.
Under the supervision of PBoC, four major banks and key economic stakeholders like China Telecom will supposedly trial digital currency payments.