Four International Banks Adopt China's e-CNY CBDC, Explore Cross-Border Applications
Summary:
Four foreign banks, including Standard Chartered, HSBC, Hang Seng Bank, and Fubon Bank, have integrated China's digital yuan central bank digital currency (e-CNY CBDC) into their platforms. These banks now allow users to transfer, withdraw, and recharge e-CNY via mobile banking, bind debit cards to the official e-CNY app, and redeem digital yuan. The banks are also exploring e-CNY CBDC applications in cross-border transactions, smart contracts, and supply chain financing.
The digital yuan central bank digital currency (e-CNY CBDC) of China is seeing increased engagement from foreign banks. Standard Chartered, a British bank, made its entry on Nov. 27, becoming the fourth foreign institution to join. As per regional media, three other banks, namely HSBC headquartered in Hong Kong, Hang Seng Bank, and Fubon Bank from Taiwan have incorporated e-CNY functionalities into their systems. These foreign banks now authorize their clients to transfer and withdraw e-CNY. Additionally, debit card binding in the official e-CNY app for personal banking customers has been facilitated by Hang Seng Bank, enabling them to acquire digital yuan. They can also recharge their digital yuan wallets via the Hang Seng China Mobile Banking App. HSBC provides similar facilities for its customers' retail e-CNY operations. On the other hand, Fubon Bank allows its users to refill e-CNY through mobile banking and utilize the CBDC with its bank card. The corporation affirms its commitment to further delve into e-CNY CBDC applications across cross-border trade, smart contracts, cross-border payments, and supply chain financing. Song Yuesheng, the Vice Chairperson and President of Hang Seng China, expressed intentions to utilize the ongoing e-CNY CBDC pilot to stimulate new consumption scenarios, enrich service systems, stimulate new consumption vitality, and provide business opportunities. A day prior, Standard Chartered announced its current exploration of the e-CNY CBDC in areas such as cross-border merchant payments, trade financing, and supply chain financing. In the previous month, Cointelegraph unveiled that the Chinese digital yuan CBDC for the first time facilitated a cross-border oil transaction as PetroChina International acquired 1 million barrels of oil using the CBDC. In the first three quarters of 2023, cross-border yuan settlements saw a 35% annual increase, hitting $1.39 trillion, as per China Daily.
Published At
11/28/2023 3:11:36 PM
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