Standard Chartered becomes the first foreign bank to join China's CBDC pilot testing
The bank will explore the potential of e-CNY in cross-border merchant payments, trade financing, and supply chain financing as part of the pilot
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On November 27, British multinational bank Standard Chartered announced its participation in the pilot testing program of China’s central bank digital currency (CBDC) known as the digital Yuan (e-CNY or digital RMB). This move makes Standard Chartered the first foreign bank to engage with the country’s CBDC.
According to the announcement, Standard Chartered, in collaboration with City Bank Clearing Services Co, will facilitate e-CNY transactions for its clients. It will allow them to purchase, exchange and redeem e-CNY within their bank accounts.
Beyond basic currency conversion, the bank will explore the potential of e-CNY in domains, such as cross-border merchant payments, trade financing, and supply chain financing. This involvement indicates the bank’s significant interest in China’s CBDC pilot testing program, which is currently active in 26 cities and provinces across the country.
Xiaolei Zhang, president of Standard Chartered China, expressed optimism about the future of the digital renminbi (RMB). “As an international bank rooted in the Chinese market for 165 years, Standard Chartered is optimistic about the development prospects of digital Renminbi.â€
Standard Chartered is actively engaged in the digital currencies landscape. Last year, it participated in the ‘Multilateral Central Bank Digital Currency Bridge’ proof-of-concept test project in Hong Kong. The test project aimed to provide cross-border payment settlement services to retail and enterprise clients.
