HSBC Facilitates China's Digital Currency in Cross-Border Payments
HSBC, the largest European bank, has taken a significant step towards facilitating the use of China's digital currency, the e-CNY, in cross-border payments. This move could potentially challenge the US bank's dominance in international trade.
HSBC customers can now link their accounts with e-CNY wallets, enabling automatic payments. This includes six bilingual educational institutions in China, demonstrating the digital Renminbi's potential in digital transformation and reducing payment processing costs.
A milestone was reached when a million barrels of crude oil were purchased on the Shanghai Petroleum and Gas Exchange (SHPGX) and settled in e-CNY. This transaction marks a significant advancement for digital Central Bank Digital Currencies (CBDCs).
Foreigners can now top up their e-CNY wallets using international credit cards, making it easier for them to access the Chinese payment system. This development aligns with China's long-held ambitions to elevate the Renminbi to a global currency.
HSBC's collaboration with UnionPay International has been instrumental in developing the Cross-border Interconnection Gateway (CPG). This gateway enables global interoperability of QR-code payments related to the digital yuan. The People's Bank of China has also introduced mBridge to connect e-CNY with international payment systems, currently being tested by the UAE and Thailand.
While the dominance of the US bank in international trade remains unchallenged, HSBC's deepening collaboration with the digital yuan and the successful implementation of e-CNY in various sectors signal a significant step towards a more multipolar global financial landscape.
Read also:
- Singapore Warns of China-Linked APT Group Targeting Critical Infrastructure
- West Virginia Governor's Revived Board Sparks Legal Concerns Amidst US Clean Energy Push
- Trump and Xi speak over the phone, according to China's confirmation.
- Unlawful MMO gold peddler cultivates around half a million dollars in income, triggering a tax dispute, followed by developers unveiling strategies to clamp down on real-world transactions
