Standard Chartered (OTC:SCBFF) has announced its participation in China’s digital yuan trials, marking a significant step for the international bank in the digital currency space. As one of the first foreign financial institutions to participate in this initiative, the Bank has launched digital yuan exchange services and is actively involved as a business pilot participant.
Standard Chartered’s commitment to the digital yuan, also known as e-CNY, extends to its application in trade and supply chain finance across multiple regions. The Bank’s direction has been informed by previous contributions to the Multilateral Central Bank Digital Currency Bridge and insights from a joint report with PricewaterhouseCoopers China.
China’s central bank has encouraged the adoption of the digital yuan for business-to-business applications. A white paper published by the central bank highlighted that the digital yuan has gained significant traction, with transactions exceeding 1.8 trillion yuan and a growing user base of over 120 million wallets.
In addition, Standard Chartered is now facilitating access to the Digital Yuan Interconnection Platform, allowing for top-up 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 of the potential of the e-CNY.
The bank’s involvement in the digital yuan ecosystem comes amid broader moves by financial institutions to integrate digital currencies into their services. For example, in early May, BNP Paribas (OTC:BNPQY) integrated digital yuan accounts with corporate clients’ wallets, highlighting the growing interest and acceptance of digital currencies in the financial sector.