Standard Chartered, a British multinational bank, has joined trials for China’s digital yuan, becoming one of the initial foreign banks to engage in this endeavor within the nation. In the November 27 announcement, it was revealed that Standard Chartered, in partnership with City Bank Clearing Services Co., will enable its clients to buy, trade, and redeem e-CNY directly within their bank accounts.
Xiaolei Zhang, president of Standard Chartered China, expressed the bank’s optimism about the digital Renminbi’s growth prospects, emphasizing the institution’s 165-year legacy in the Chinese market.
The bank is set to participate in China’s ongoing e-CNY CBDC pilot program, which spans 26 cities and provinces. Their focus areas encompass cross-border merchant payments, trade financing, and supply chain financing.
Standard Chartered’s involvement in the Multilateral Central Bank Digital Currency Bridge project in Hong Kong last year enabled cross-border payment settlement services for retail and enterprise clients. Additionally, in May 2023, the bank partnered with PricewaterhouseCoopers China to release a report titled ‘Central Bank Digital Currency to Create a Future Banking Ecosystem,’ discussing CBDC application prospects in retail, trade, and supply chain finance.
China’s central bank recently published a white paper titled ‘A cross-border e-commerce business-to-business digital renminbi application solution’ on November 25. The document urged commercial payment processors to integrate the e-CNY CBDC into consumer transactions. Since its launch in 2020, e-CNY transactions have exceeded 1.8 trillion yuan ($253.6 billion), with wallet numbers skyrocketing to 120 million.
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