The legal regulations in the cryptocurrency market continue to increase along with significant partnerships. Accordingly, the British bank Standard Chartered has decided to participate in the testing phase of the digital yuan central bank digital currency (e-CNY CBDC) project addressed by the Chinese government. The bank will become one of the first foreign banks to accomplish this in the country.
What Is Expected from the e-CNY Project?
According to an announcement by Standard Chartered on November 27, the bank will allow its customers to purchase and use e-CNY through their bank accounts via its partner City Bank Clearing Services Co. After the announcement, Standard Chartered China Chairman Xiaolei Zhang stated: “As an international bank that has been rooted in the Chinese market for 165 years, Standard Chartered is optimistic about the development prospects of the digital currency e-CNY project.”
In addition to this announcement, the bank also revealed that it will join China’s ongoing e-CNY CBDC pilot test program in 26 cities and provinces. Standard Chartered disclosed that the test phase includes exploration areas such as cross-border commercial payments, trade finance, and supply chain finance.
Steps Toward CBDC Projects Continue
Last year, Standard Chartered participated in the test project of the “Multiple Central Bank Digital Currency Bridge” launched in Hong Kong to provide cross-border payment reconciliation services to individual and corporate customers.
In May 2023, Standard Chartered and PricewaterhouseCoopers China jointly published a report on CBDC projects titled “Creating the Future Banking Ecosystem with Central Bank Digital Currency,” addressing the application expectations in the areas of individual, trade, and supply chain finance, pioneering in this field.
On November 25, the People’s Bank of China presented a report to the public entitled “Inter-business Cross-border E-commerce Digital Currency Application Solution.” The report called for commercial payment processors to integrate e-CNY CBDC assets for consumer transactions. Since its inception with the first step in 2020, e-CNY transactions have exceeded 1.8 trillion Yuan, worth $253.6 billion, while the number of wallets has risen to 120 million.
- Standard Chartered joins China’s e-CNY project.
- Bank optimistic about digital currency’s future.
- e-CNY transactions surpass significant milestones.