SHANGHAI — China’s digital yuan operation centre took a major step forward Tuesday, signing direct participation agreements with 26 financial institutions in Shanghai as part of an effort to build faster, lower-cost cross-border payment systems and boost the global reach of the Chinese currency.
The digital yuan’s international operation centre is established and run by the People’s Bank of China. Under the new agreements, participating institutions will gain access to the Cross-border e-CNY Transfer Services platform, known as CBETS — an around-the-clock digital settlement system that connects to foreign central banks and financial institutions overseas.
Jean Lu, CEO of Standard Chartered Bank (China), highlighted the significance of the development. “Fintech is fundamentally reshaping the underlying logic of cross-border payments and providing new momentum and pathways for them,” Lu said in a press release.
Lu added that a smoother payment experience could strengthen the yuan’s international standing. “An efficient, convenient, and compliant cross-border payment experience will further enhance the international use of the yuan,” she said.
Standard Chartered Bank (China) noted that it was among the first foreign banks to sign on and join the CBETS platform.
According to multiple industry sources who spoke with Reuters, China’s central bank is actively working to expand the use of digital yuan both at home and abroad — a direction that puts Beijing on a different course from the United States in determining how the future of money takes shape, and one that could eventually put the two nations in competition.
In March, sources told Reuters that China had approved roughly a dozen additional banks to handle digital yuan transactions, reflecting Beijing’s continued push to accelerate adoption of the digital currency.
