China signs up 26 financial institutions to digital yuan cross-border payment platform

[SHANGHAI] China’s digital yuan operation centre signed direct participant agreements with 26 financial institutions in Shanghai on Tuesday (Jun 16).

The centre aims to expand low-cost, efficient cross-border payments and advance global adoption of the Chinese currency.

The international operation centre of the digital yuan was established and managed by the People’s Bank of China.

The agreement will allow participants to join the Cross-border e-CNY Transfer Services (Cbets), an integrated cross-border settlement platform that supports round-the-clock digital payment links with foreign central banks and overseas financial institutions.

“Fintech is fundamentally reshaping the underlying logic of cross-border payments and providing new momentum and pathways for them,” said Jean Lu, CEO of Standard Chartered Bank (China).

“An efficient, convenient and compliant cross-border payment experience will further enhance the international use of the (renminbi),” she added.

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Standard Chartered Bank (China) said that it was one of the first foreign banks to sign and join Cbets.

China’s central bank is making a broad push to increase the use of digital yuan at home and abroad, several industry sources told Reuters, setting Beijing on a different – and potentially competing – path from the US in shaping the future of money.

China granted approval to a dozen additional banks to handle its digital yuan in March, sources told Reuters, as Beijing pushed to accelerate use of the digital currency. REUTERS