Standard Chartered to Participate in China's Digital Yuan Trials, Bringing e-CNY to International Banking Scene
Summary:
Standard Chartered, a British multinational bank, joins the trials of China's digital yuan currency (e-CNY CBDC), becoming one of the first international banks to participate. The bank will allow customers to transact with e-CNY through its partner, City Bank Clearing Services Co. Furthermore, it is also engaging in China's e-CNY CBDC pilot testing program across 26 cities and provinces, with endeavors focused on cross-border merchant payments and finance. This comes as e-CNY transactions have exceeded 1.8 trillion Yuan since its 2020 inception, with wallet counts rapidly increasing to 120 million.
Standard Chartered, a British international banking institution, is set to take part in China's digital currency (e-CNY CBDC) trial, becoming one of the first overseas banks to do so. Via City Bank Clearing Services Co, its partner firm, Standard Chartered will provide its customers the ability to buy, swap, and cash in e-CNY through their bank accounts. As stated by Xiaolei Zhang, the President of Standard Chartered China, the bank has been entrenched in China's market for over a century and a half and is hopeful about digital yuan's potential for growth.
In addition, the bank will contribute to China's e-CNY CBDC pilot test program taking place in 26 Chinese prefectures and cities. Cross-border commercial payments, trade finance, and supply chain finance are among the areas the bank seeks to explore with this initiative. Standard Chartered also took part in the "Multilateral Central Bank Digital Currency Bridge" in Hong Kong last year; this was a test project demonstrating the concept of cross-border payment settlement services for retail and corporate customers.
Come May 2023, Standard Chartered in collaboration with PricewaterhouseCoopers China, intends to release a report titled "Central Bank Digital Currency to Create a Future Banking Ecosystem". This document will delve into the potential applications of CBDCs in sectors such as retail, trade, and supply chain finance.
On November 25, China's central bank issued a white paper themed "A cross-border e-commerce business-to-business digital yuan application solution". This called for commercial payment processors to leverage the e-CNY CBDC for customer payments. Since its establishment in 2020, e-CNY transactions have escalated beyond 1.8 trillion Yuan ($253.6 billion), with wallet counts also reaching a massive 120 million.
Published At
11/27/2023 3:13:42 PM
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