Guangxi's First Digital Yuan 2.0 Timber Supply Chain Settlement Transaction Instantly Settled

(Source: Digital Legal Currency Research Society)

Recently, Liu Fan, a salesperson at Lin Yun Zhilian Technology Co., Ltd. in Nanning, Guangxi, was pleasantly surprised to receive a bank message alert, only to find that the payment for a wood chip transaction completed in just seconds after the chips were unloaded. This 33,000 yuan wood chip deal in Mashan County became Guangxi’s first case of supply chain settlement for timber completed via Digital Renminbi 2.0.

“Previously, bringing a truckload of wood chips into the factory, the payment would take at least a week, or even half a month, and the worst was delayed payments causing a break in the capital chain,” Liu Fan said about the transaction, noting significant changes. “Now, from signing the contract, receiving and inspecting the goods, invoicing, to payment—all are online, and the payment arrives instantly.”

Behind this smooth transaction is a digital transformation of the traditional forestry supply chain. In 2024, Guangxi became the first province in the country with a forestry industry exceeding one trillion yuan. However, Mashan County’s timber industry has long faced issues such as inefficient upstream and downstream coordination, difficulty in financing, and challenges in fund supervision.

In November 2025, based on the national digital rural pilot program, Mashan County boldly innovated by using wood chip trade as a breakthrough, introducing blockchain and digital RMB to create an open digital intelligent forestry supply chain platform covering procurement, processing, sales, and settlement. As of March 11 this year, the platform has served 70 forestry companies across the region, with a total settlement amount exceeding 70 million yuan.

How does the supply chain platform operate? Ma Banghan, Executive Director of Guangxi Hongsheng Supply Chain Management Co., Ltd., explained that the key lies in “closing the loop”: contracts are automatically generated at the front end; midstream provides digital management tools for processing enterprises; and at the back end, blockchain evidence is used to instantly generate an “electronic settlement slip” upon goods acceptance, triggering digital RMB payments, while simultaneously completing tax invoicing.

“We have integrated data from forestry, natural resources, and other departments to support farmers and brokers in legally issuing purchase invoices, solving the industry’s long-standing ‘tax bottleneck,’” Ma said.

According to reports, Mashan County plans to carry out pilot projects this year in three towns, including “broker self-invoicing” and “pulp mill list matching,” involving leading forestry deep-processing enterprises and financial institutions to validate the model. The goal is to reduce the comprehensive costs of county forestry enterprises by over 50 million yuan annually within three years and to boost the annual output value of the forestry industry by nearly 600 million yuan. (Source: Guangxi Daily)

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