Standard Chartered will offer support for China’s digital yuan.

Standard Chartered has announced its commitment to support China's digital yuan, signaling a strategic move into embracing the advancements in digital currency. The bank's collaboration with the digital yuan underscores the increasing global recognition and adoption of central bank digital currencies (CBDCs).

Standard Chartered will offer support for China’s digital yuan.

Standard Chartered Bank has announced its participation in China’s digital yuan pilot project, which is set to commence on November 27. The UK-based international bank, which has deep roots in the Chinese market, will offer customers services such as digital yuan exchange and redemption. It will also access the digital currency’s interconnection platform via City Bank Clearing Services Co., Ltd.

Standard Chartered expressed optimism about the digital yuan’s potential use in international merchant payments, trade financing, and supply chain financing. The bank highlighted its previous involvement with the digital yuan, including a proof-of-concept test conducted in September 2022 and a collaborative report with PwC China published in May 2023. Standard Chartered described itself as one of the first foreign banks to participate in the digital yuan business pilot. With assets totaling $819 billion as of 2022, it is currently the 43rd largest bank in the world.

The digital yuan, or digital renminbi (RMB), is China’s central bank digital currency (CBDC). It can be used for transactions by individuals and businesses alike. China was one of the first countries to carry out a large-scale pilot of a CBDC, with the program covering 26 pilot areas. Reports suggest that the availability of the digital yuan is gradually expanding.

In February, China distributed millions of dollars worth of digital yuan to the public. In March, one province reported $22 billion in digital yuan payments, and the popular social media app WeChat began accepting payments in the digital currency. In April, it was announced that government employees in one city would receive salary payments in the digital yuan. The digital yuan has also been integrated into the Chinese e-commerce app Meituan and certain air travel services. PetroChina carried out the first cross-border crude oil trade involving the digital yuan in October.

Standard Chartered’s participation in the digital yuan pilot project highlights the growing interest and acceptance of CBDCs in the financial industry. As more banks and institutions explore the potential of digital currencies, the role of CBDCs in facilitating cross-border transactions and enhancing financial inclusion is likely to gain further attention.

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