Standard Chartered to Begin Testing China's e-CNY CBDC

By: Eva Baxter

UK-based multinational bank, Standard Chartered, plans to initiate testing of China's Central Bank Digital Currency (CBDC), the e-CNY, marking its position as one of the first international banks to participate in the trials within China. As stated in a recent announcement, the bank, in collaboration with partner City Bank Clearing Services Co., will facilitate its clients in purchasing, exchanging, and redeeming the e-CNY via their bank accounts.

Xiaolei Zhang, president of Standard Chartered China, voiced his optimism for the growth potential of the digital Renminbi, keeping in view the bank's thriving presence in the Chinese market for the past 165 years. The bank also plans to enter China's pilot testing program for the e-CNY CBDC, currently active across 26 cities and provinces. Standard Chartered aims to explore several domains including cross-border merchant transactions, supply chain financing, and trade financing.

In the previous year, the bank has also participated in the Multilateral Central Bank Digital Currency Bridge project test in Hong Kong. The test was focused on providing services for cross-border payment settlements for both retail and corporate clients. The bank, in May 2023, alongside PricewaterhouseCoopers China, unveiled a report titled 'Central Bank Digital Currency to Create a Future Banking Ecosystem' discussing the prospective applications of CBDC in retail, trade, and supply chain finance. Evidently, since the rollout of e-CNY in 2020, it has witnessed transactions exceeding 1.8 trillion yuan ($253.6 billion), with wallet numbers escalating to 120 million holders.