Standard Chartered to Participate in China’s Digital Yuan Trials
Standard Chartered, a British multinational bank, has announced that it will take part in trials of China’s digital yuan central bank digital currency (e-CNY CBDC), making it one of the first foreign banks to do so in the country. Through its partner City Bank Clearing Services Co., Standard Chartered will enable its clients to purchase, exchange, and redeem e-CNY within their bank accounts. The bank will also join China’s e-CNY CBDC pilot testing program, focusing on areas such as cross-border merchant payments, trade financing, and supply chain financing.
Standard Chartered’s Previous Involvement in CBDC Projects
Last year, Standard Chartered participated in a proof-of-concept test project called the “Multilateral Central Bank Digital Currency Bridge” in Hong Kong. The project aimed to provide cross-border payment settlement services for retail and enterprise clients. In addition, Standard Chartered and PricewaterhouseCoopers China released a report earlier this year discussing the application prospects of central bank digital currencies (CBDCs) in various sectors.
China’s Growing Adoption of e-CNY
In a recent white paper, China’s central bank called for commercial payment processors to integrate the e-CNY CBDC for consumer transactions. Since its launch in 2020, e-CNY transactions have exceeded 1.8 trillion Yuan ($253.6 billion), with the number of wallets reaching 120 million.
Hot Take: Standard Chartered Joins China’s Digital Yuan Trials
Standard Chartered’s participation in China’s digital yuan trials showcases its optimism about the development prospects of digital Renminbi. As one of the first foreign banks to take part in these trials, Standard Chartered aims to explore various use cases of the e-CNY CBDC, including cross-border payments and trade financing. China’s growing adoption of the e-CNY is evident through its increasing transaction volume and wallet count. This move by Standard Chartered further strengthens the role of digital currencies in the future banking ecosystem.
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