China digital currency: BNP Paribas to promote digital yuan usage in China
- BNP to link client digital yuan wallets to bank accounts to up real-time use, plans roll-out in smart contracts, supply chain finance, and for utility and cross-border payments
- The fast expansion of e-CNY has forced foreign banks to rethink their strategies and consider the competitive advantage it could bestow, says consultancy Oliver Wyman
BNP Paribas is partnering with Bank of China (BOC) to promote China’s digital fiat money to its corporate clients, the French bank said in a statement on Thursday.
The collaboration allows BNP Paribas China to connect with BOC’s system and launch an e-CNY management system for its corporate clients. China has so far authorised 10 banks, all domestic lenders, to handle its digital currency business.
The system can “link [the client’s] digital yuan wallet to its bank account” to facilitate “efficient, real-time and convenient [digital cash] practice”, BNP said in the statement.
In addition, the French bank will explore expanding usage of China’s central bank digital currency (CBDC), to smart contracts, supply chain finance, and for utility and cross-border payments, it said.
“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,” said BNP Paribas China chief executive CG Lai.
