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Standard Chartered, a prominent British bank, has revealed its involvement in the testing phase of China's digital yuan, the e-CNY CBDC.
This move positions the bank as among the earliest foreign financial institutions actively participating in China’s emerging digital currency scene.
In collaboration with City Bank Clearing Services Co., Standard Chartered aims to offer a spectrum of services linked to the digital yuan. These services encompass the buying, exchanging, and redeeming of e-CNY via their clients’ bank accounts. Xiaolei Zhang, President of Standard Chartered China, has conveyed the bank’s positive outlook on the future of the digital renminbi, highlighting the bank’s established presence in China.
Furthermore, Standard Chartered’s engagement goes beyond simple currency transactions. The bank intends to explore realms like cross-border merchant payments and trade and supply chain financing under the e-CNY CBDC pilot program.
This involvement signifies a broader interest in exploring the potential uses of digital currencies in global trade and finance.
Standard Chartered has previously participated in the “Multilateral Central Bank Digital Currency Bridge” project in Hong Kong, focusing on cross-border payment settlements for both retail and corporate clients.
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Additionally, in a joint report with PricewaterhouseCoopers China released in May 2023, the bank discussed the extensive potential applications of CBDCs in retail, trade, and supply chain finance.
China’s strides toward digital currency have shown substantial advancement since the e-CNY’s introduction in 2020. Digital yuan transactions have surpassed 1.8 trillion yuan ($253.6 billion), and the count of digital wallets has reached 120 million. This rapid uptake underscores the potentially transformative influence of digital currencies on the global financial stage.