By
Bhushan Akolkar
June 27th, 2024
Industrial Bank has established itself as a leader in this sector, promoting green and digital finance.
Industrial Bank, a major Chinese bank located in Fuzhou, recently announced that new and existing users of industrial wallets (the bank’s digital wallet) and people using anonymous wallets but also holding an Industrial Bank card can earn points in a personal carbon account.
Earning Points through Virtual Currency Transactions
Digital wallet users can earn these points by implementing digital currency scanning consumption on the Industrial Bank Mobile Banking App. The personal carbon account points cover several transactions, including paying for living expenses, investing in funds, and paying credit card bills.
According to a spokesperson from the Digital Yuan Department, this innovative approach is a big step within the industry because it combines two important trends in finance: the rise of digital banking and the growing focus on green finance. The spokesperson said:
“Digital RMB wallets and carbon accounts are new carriers for the innovative development of digital finance and green finance in China in recent years. Promoting the integration of the two can achieve complementary advantages, play a synergistic effect, and help build a green consumption system and a new digital RMB ecosystem.”
Leading the Way in Green and Digital Finance Initiatives
Industrial Bank has established itself as a leader in this sector, promoting green and digital finance. The bank has reported opening 7.3 million digital wallets for its customers, demonstrating the growth of digital banking in China.
At the same time, the bank has continued to be a major force in green finance. It has used its digital currency, RMB, to carry out major green finance projects. Industrial Bank revealed that it used its central bank digital currency (CBDC) to power the first-ever purchase of marine carbon. It also provided approximately $967 million loan for projects geared towards green finance.
Thus, by linking its digital wallet to the personal carbon account system, Industrial Bank is setting a new approach for its users to engage in sustainable finance through their everyday activities. The bank sees this as a way to build a green and sustainable system as well as a new digital RMB ecosystem.
Furthermore, the bank is working towards making it easy for its customers to make environmentally friendly choices when they do their banking and spending. This approach could further spur the adoption of digital and green finance in the Asian country.
Significance of This Innovative Approach
The integration of digital and green finance offers complementary advantages. It fosters environmental sustainability while improving the efficiency of banking systems, ultimately leading to a more robust and resilient financial ecosystem.
The focus on green finance is a good approach to addressing issues that surround environmental sustainability. It also paves the way for innovation and building a sustainable financial ecosystem that will benefit society and the environment.