Standard Chartered, the British multinational bank, has announced its participation in the pilot testing of China's digital yuan central bank digital currency (e-CNY CBDC). This makes Standard Chartered one of the first foreign banks to engage in such trials within China.
Standard Chartered to Offer e-CNY Services to Clients
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. Xiaolei Zhang, president of Standard Chartered China, expressed optimism about the development prospects of the digital Renminbi, emphasizing the bank's long-standing presence in the Chinese market.
Exploring Cross-Border Payments and Financing
In addition to offering e-CNY services, Standard Chartered will join China's e-CNY CBDC pilot testing program, currently running in 26 cities and provinces. The bank plans to explore various areas, including cross-border merchant payments, trade financing, and supply chain financing.
Standard Chartered's Involvement in CBDC Initiatives
Last year, Standard Chartered participated in the "Multilateral Central Bank Digital Currency Bridge" proof-of-concept test project in Hong Kong. This project aimed to provide cross-border payment settlement services for retail and enterprise clients. In May 2023, Standard Chartered, in collaboration with PricewaterhouseCoopers China, released a report on the application prospects of CBDCs in retail, trade, and supply chain finance.
China's Growing Adoption of e-CNY
China's central bank recently published a white paper titled "A cross-border e-commerce business-to-business digital renminbi application solution," urging 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 surging to 120 million.
