© Reuters.
Standard Chartered (OTC:) has announced its participation in China’s digital yuan trials, marking a significant step for the international bank in the realm of digital currencies. As one of the first foreign financial institutions to engage in this initiative, the bank has launched digital yuan exchange services and is actively involved as a business pilot participant.
The involvement of Standard Chartered in the digital yuan, also known as e-CNY, extends to its application in trade financing and supply chain financing across multiple regions. The bank’s direction has been shaped by earlier contributions to the “Multilateral Central Bank Digital Currency Bridge” and insights from a collaborative report with PricewaterhouseCoopers China.
China’s central bank has been encouraging the adoption of the digital yuan for business-to-business applications. A white paper released by the central bank has highlighted the significant traction the digital yuan has gained, with transactions surpassing 1.8 trillion yuan and a growing user base of over 120 million wallets.
Moreover, Standard Chartered is now facilitating access to the interconnection platform for the digital yuan, allowing for recharge and redemption services. This development follows the bank’s confirmation of its involvement in the digital yuan trials through City Bank Clearing Services Co., with Xiaolei Zhang, a prominent advocate for the potential of the e-CNY.
The bank’s engagement in the digital yuan ecosystem comes amid broader moves by financial institutions to integrate digital currencies into their services. For instance, earlier in May, BNP Paribas (OTC:) integrated digital yuan accounts with corporate clients’ wallets, highlighting the growing interest and acceptance of digital currencies in the financial sector.
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