Future

Create

Bank AI

Yuan

Standard

&nbsp; Source: Adobe/amixstudio 
Standard Chartered, a British multinational bank, will initiate exchange services for China’s central bank digital currency (CBDC), the digital yuan, as it is set to participate in its trials. 
On November 27, Standard Chartered <a href="https://mp.weixin.qq.com/s/5DGXMboiUOlJlHJUBqTaqw">announced</a> that it is set to participate in trials of China’s digital yuan, the central bank’s digital currency (e-CNY CBDC). This makes Standard Chartered one of the first foreign banks to engage in trials of China’s digital currency. 
The bank’s China division is collaborating with City Bank Clearing Services to provide customers with access to the digital yuan’s interconnection platform, allowing for recharge and redemption. This will enable its clients to purchase, exchange, and redeem e-CNY within their bank accounts. The bank will reportedly focus on areas such as cross-border merchant payments, trade financing, and supply chain financing as part of the pilot testing program, which is currently active in 26 cities and provinces across China. 
China’s e-CNY (electronic Chinese Yuan) has gained notable adoption, and global banks are increasingly expressing interest in exploring the use cases and potential integration of digital currency. Standard Chartered’s move follows the broader trend of major economies worldwide initiating digital currency programs. 
Earlier this month, Visa also <a href="https://www.visa.com.hk/zh_HK/about-visa/newsroom/press-releases/nr-hk-231101.html">announced</a> that it had completed the Hong Kong Monetary Authority’s CBDC pilot program with leading financial institutions, HSBC and Hang Seng Bank. This pilot was part of the “Digital Hong Kong Dollar” program organized by the HKMA, which was initiated earlier this year in May and was the first use case globally to utilize tokenized deposits for interbank B2B self-transactions and cross-chain transactions. 
Standard Chartered’s integration of the digital yuan reflects the commitment of global banks to embrace digital currencies. Virtually every major economy worldwide has initiated a digital currency program. Nevertheless, China’s e-CNY has stood out with notable adoption over the past year. 
China’s digital yuan is considered the most advanced CBDC among those researched or developed by major economies. By the end of June this year, it had reached a <a href="https://finance.caixin.com/2023-10-12/102116216.html">transaction volume</a> of 1.8 trillion yuan ($250 billion), and the number of wallets had reached 120 million. 
While few banks have enabled their customers to transact with China’s CBDC, Standard Chartered’s move signals an increasing acceptance of digital yuan services by global financial institutions. 
The bank expressed optimism about the development prospects of the digital renminbi, emphasizing its deep roots in the Chinese market over the past 165 years. 
China’s e-CNY currently stands as one of the most widely used digital currencies globally. Its implementation extends to various public services, including transportation in specific districts. 
<h2 id="b-standard-chartered-continues-collaboration-with-china-on-digital-yuan-b">Standard Chartered Continues Collaboration with China on Digital Yuan</h2> 
 Standard Chartered’s participation in offering exchange services for <a href="https://cryptonews.com/news/chinese-banks-stepping-up-blockchain-cross-border-trade-fina-8016.htm">China’s digital yuan</a> builds upon its previous involvement in exploring central bank digital currencies (CBDCs). 
Last year, the bank took part in the “Multilateral Central Bank Digital Currency Bridge” proof-of-concept test project in Hong Kong, focusing on cross-border payment settlement services for both retail and enterprise clients. 
Additionally, in May 2023, Standard Chartered, in collaboration with PricewaterhouseCoopers China, released a report titled “Central Bank Digital Currency to Create a Future Banking Ecosystem.” The report delved into the potential applications of CBDCs in retail, trade, and supply chain finance. 
China’s central bank has been actively promoting the adoption of its digital yuan, also known as e-CNY. A recent <a href="http://zj.people.com.cn/n2/2023/1125/c186327-40654676.html">white paper</a> published by the People’s Bank of China titled “A cross-border e-commerce business-to-business digital renminbi application solution” emphasized the integration of e-CNY CBDC by commercial payment processors for consumer transactions. 
Additionally, a Chinese state-owned bank has announced plans to connect the digital yuan to the “world’s biggest small commodities market,” a move that could potentially boost the adoption of China’s Central Bank Digital Currency (CBDC). 
<a href="https://cryptonews.com/news/china-aiming-for-international-digital-yuan-expansion-e-cny-going-global.htm">Standard Chartered’s engagement</a> in these initiatives showcases the ongoing collaboration between global financial institutions and China’s efforts to advance its digital currency ecosystem.

Standard Chartered to Participate in Trials of China’s Digital Yuan CBDC – Here’s What You Need to Know

Table of Contents

Cryptonews.com

Other articles published on Nov 27, 2023

Revealed: Why Crypto Bulls Are Bullish On These 3 Undervalued BNB Tokens

Decentralized Exchange Unlocks Its Own Token on December 1! Millions of Tokens Will Be Distributed!

Maximizing Cyber Monday With OduwaPay

My First Blog as Binance’s CEO with Richard Teng

Cosmos Hub Approves Proposal for Capping ATOM Inflation Rate to 10%

Coinbase Expands India Hiring Despite Discontinuing Services!

Join our free newsletter for daily crypto updates!