Standard Chartered, the renowned British multinational bank, has joined the pilot testing of China’s digital yuan central bank digital currency (CBDC), known as e-CNY. This marks a significant milestone as the bank becomes one of the first foreign institutions to participate in such trials within the country.
Active Participation in CBDC Services
Through its partner, City Bank Clearing Services Co, Standard Chartered will enable its clients to seamlessly engage in the purchase, exchange, and redemption of e-CNY directly within their bank accounts.
Xiaolei Zhang, the President of Standard Chartered China, expressed optimism about the digital Renminbi’s development prospects. He further emphasized the bank’s strong roots in the Chinese market spanning 165 years.
In addition to providing e-CNY services, Standard Chartered has actively joined China’s e-CNY CBDC pilot testing program. This initiative, currently underway in 26 cities and provinces, is a testament to the bank’s commitment to exploring the potential applications of digital currency in various financial domains. Key areas of exploration include cross-border merchant payments, trade financing, and supply chain financing.
Building on Past Collaborations and Insights
Standard Chartered’s involvement in the “Multilateral Central Bank Digital Currency Bridge” proof-of-concept test project in Hong Kong last year highlights its dedication to advancing cross-border payment settlement services for both retail and enterprise clients.
Furthermore, the collaborative effort with PricewaterhouseCoopers China resulted in the release of the report. It is titled “Central Bank Digital Currency to Create a Future Banking Ecosystem” in May 2023. The report delves into the application prospects of CBDCs in retail, trade, and supply chain finance.
China’s Central Bank Advocates CBDC Integration
Recent developments from China’s central bank, including the publication of a white paper titled “A cross-border e-commerce business-to-business digital renminbi application solution” on Nov. 25, underscore the nation’s commitment to integrating e-CNY CBDC into commercial payment processors for consumer transactions.
Since its inception in 2020, e-CNY transactions have surged. Currently, it has surpassed 1.8 trillion yuan ($253.6 billion), with a remarkable 120 million wallets in use.
Read More:
Hong Kong Fast-Tracks Crypto Product Approvals After JPEX Setback
FTX Faces Lawsuits Over Use of Mercedes F1 Team and MLB Names in New Promotional Campaign