Four foreign banks have now joined the CBDC pilot trials of China’s e-CNY. The recent addition of British bank Standard Chartered on Nov. 27 marks a milestone, bringing the total number of integrated foreign banks to four.
HSBC, Hang Seng Bank, and Fubon Bank Embrace e-CNY Integration
Local news reports reveal that alongside Standard Chartered, Hong Kong-based HSBC, Hang Seng Bank, and Taiwanese bank Fubon Bank have seamlessly integrated e-CNY into their platforms. This move empowers their clients to effortlessly transfer and withdraw e-CNY.
Hang Seng Bank has taken it a step further by allowing personal banking customers to bind debit cards within the official e-CNY app. This move is to further offer a convenient avenue for redeeming digital renminbi. Clients can also top up their digital renminbi wallet through the Hang Seng China Mobile Banking App.
Additionally, HSBC, recognizing the growing demand for retail e-CNY use, has introduced similar features for its clients. This enables retail users to leverage the benefits of e-CNY seamlessly.
Fubon Bank Explores Diverse e-CNY Applications
Fubon Bank has positioned itself as a forward-thinking player in the e-CNY landscape. The bank not only allows users to recharge e-CNY via mobile banking but also facilitates spending the CBDC using its bank card.
Going beyond basic functionalities, Fubon Bank has expressed its commitment to exploring e-CNY CBDC applications in cross-border trade, smart contracts, cross-border payments, and supply chain finance.
Strategic Vision of Hang Seng Bank
Song Yuesheng, vice chairman and president of Hang Seng China, outlines the bank’s strategic vision for participating in the ongoing e-CNY CBDC pilot. The plan is to create new consumption scenarios, enrich service systems, stimulate new consumption vitality, and provide business opportunities. This underlines the broader impact and potential transformative effects of the e-CNY CBDC on banking services and consumer experiences.
Standard Chartered has already initiated experiments with the e-CNY CBDC. Also, the bank is focusing on areas such as cross-border merchant payments, trade financing, and supply chain financing. This proactive approach demonstrates the diverse experimentation within the financial sector to unlock the full potential of the digital yuan.
Cross-Border Settlements and Growing Yuan Utilization
Highlighting the practical utility of the e-CNY CBDC, recent reports reveal its use in settling a cross-border oil deal where PetroChina International purchased 1 million barrels of oil using the CBDC. Furthermore, in the first three quarters of 2023, the use of the yuan in cross-border settlements witnessed a remarkable 35% year-on-year increase, reaching $1.39 trillion, as reported by China Daily.