In a novel initiative, a Chinese commercial bank has stepped up to battle climate change by encouraging waste recycling. Qingdao Branch of the Bank of Communications, a prowess in the Chinese banking sector, has rolled out a rewards program where residents can earn digital yuan in exchange for recycling their waste. This system diverts from conventional programs where citizens earn points for recycling.
In partnership with the city’s household waste disposal provider, Jiaoyun Beijie, the bank replaces the eco-friendly act of recycling with a digital payday. Instead of earning points, Qingdao citizens can now earn digital fiat, linked to the Chinese national currency.
Residents have to deposit suitable items in the government-approved recycling bins, which could potentially earn them digital currency. This innovative approach not only encourages citizens to recycle but also integrates them into the burgeoning digital economy.
Recycling correctly pays off as residents are entered into a draw, from which winners are selected randomly and rewarded with coins. These are later transferred to their digital yuan wallets. This novel intersection of digital currency and environment, it seems, is the new frontier for China’s CBDC models.
The scheme has far-reaching objectives rooted in Climate Change initiated drives. The bank asserts that this program will inspire a greener, more sustainable lifestyle among Qingdao residents. The aim is, to transform waste recycling into a trend and induce low-carbon living.
The bank is also focusing on integrating these digital RMB green initiatives with new “inclusive finance” and “green financing” products. This shows the bank’s commitment towards leveraging technology for environmental protection.
It’s worth pointing out that the Bank of Communications has an interesting shareholder structure. Approximately 50% owned by Chinese state organs, it also counts the global banking titan HSBC a 19% stakeholder. The bank has been particularly bold in the CBDC loans space.
This isn’t the first time we’ve seen a fusion of technology with environmental efforts in China. In 2019, China began promoting “zero-waste cities” and recycling programs with a radical goal of reducing the amount of waste going to landfill sites. This push towards combining rewarding environmental behavior with the introduction of digital currency is a testament to China’s ambition to become a leading sustainable digital economy. It’s an example of how blockchain can be integral not only to financial growth but also to press for positive social change.
Source: Cryptonews
