BNP Paribas To Promote Digital Yuan By Linking With Banks

Key Points:

• BNP Paribas and BOC are collaborating to market China’s digital fiat money to corporate customers.
• The CBDC will also be investigated for usage in smart contracts, supply chain financing, and cross-border payments by the bank.

According to the South China Morning Post (SCMP), French bank BNP Paribas (BNP) is encouraging the usage of China’s digital yuan by tying wallets to bank accounts.

BNP Paribas China will be able to link to the Bank of China’s (BOC) system and develop an e-CNY management system for its corporate customers as a result of the agreement. So far, China has approved ten banks, all of which are local institutions, to handle its digital currency operations.

BOC is one of eight banks in China permitted to conduct digital currency transactions.

Moreover, the French bank will investigate the possibility of extending the use of China’s central bank digital currency (CBDC) to smart contracts, supply chain financing, and utilities and cross-border payments.

CG Lai, chief executive officer of BNP Paribas China, stated:

“The collaboration has once again demonstrates our commitment to the China market, and we will continue to enhance our customer service capabilities through digital innovation and contribute to China’s economic development.”

China’s digital yuan development is the most advanced among major nations’ CBDC programs, with testing beginning in 2020.

According to a 2021 study by the nation’s central bank, Beijing began researching a possible sovereign digital currency in 2014, and one of its aims was to provide unbanked individuals, especially those traveling from outside, access to digital banking in China.

The digital yuan, also known as Digital Currency Electronic Payment in China, is being tested in 26 cities and areas spread over 17 provinces. It has been employed in shopping, transportation, and even salary payments.

As Coincu reported, Changshu, a city in China’s Jiangsu Province, has released a notice saying that starting this month, all government personnel under its jurisdiction would be paid in digital RMB or digital yuan.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News