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Standard Chartered is First Foreign Bank to Join China e-CNY Pilot


Standard Chartered China is offering new B2B trade services related to China’s e-CNY central bank digital currency (CBDCs). These include minting and redemptions that will work through the City Bank Clearing Service, the bank announced on Monday.

Standard Chartered is one of the first foreign banks to become involved in the Chinese CBDC project, arguably the world’s most advanced central bank effort. The move comes after central bank official Li Xin launched a new B2B digital renminbi platform to improve cross-border functions, including order information matching and foreign exchange compliance. 

China Wants Businesses to Drive e-CNY

At the same event last Friday, Wu Gang, the vice president of the central bank branch in Zhejiang province, also effected an initiative to increase the use of the CBDC among small-to-medium sized enterprises. Earlier this year, DBS Singapore launched a pilot to test the exchange of e-CNY between merchants and clients on its own network.

Read more: The Beginners Guide to Blockchain

Central Bank Digital Currency Progress | Source: Statista

President Xi Jinping previously favored a tokenized currency to challenge the US dollar in international trade. The idea gained media traction amid reports of the US dollar’s faltering dominance and fiscal challenges this year. An alternative trade currency was also mentioned at a meeting of the leaders of Brazil, Russia, India, China, and South Africa in August.

Read more: How To Accept Crypto Payments: A Brief Guide

CBDC Could Accrue Censorship

So far, the People’s Bank of China has conducted pilots for its CBDC in 26 cities. As of the end of June, these trials had been responsible for $249.3 billion in transactions.

In October, the foreign exchange regulator hinted that programmable money could help improve the implementation of monetary policy. The government could embed an expiry date in the money or limit where it could be spent. 

Do you have something to say about efforts by China to promote its e-CNY CBDC through trade or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.



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