,Standard Chartered Bank Participates in China’s CBDC Pilot Trials: Here’s What You Need to Know
Standard Chartered Emerges as One of the World’s Largest Multinational Banks to Engage in CBDC Trial
China, that became one of the first nations in the world to launch trials of its CBDC, is expanding its trials to accommodate more lenders. Standard Chartered China has become the latest bank that has joined China’s CBDC pilot which is now in its advanced stage. What this essentially means is that the Standard Chartered Bank in the Asian nation will now allow its users to access the digital version of the Chinese Yuan by integrating its platform with China’s special app that is dedicated to its CBDC.
A CBDC or a Central Bank Digital Currency is the blockchain representation of fiat currencies. Transactions via CBDCs are expected to not only reduce the reliance on paper notes, but also keep transaction history transparent and tamper-proof. Along with digital yuan, China’s CBDC is also recognised as the e-CNY or the digital RMB (renminbi).
Now, Standard Chartered has become one of the world’s largest multinational banks to get involved into a CBDC trial.
“As an important infrastructure for the digital economy, the development of digital RMB will gradually improve the payment and consumption experience and strengthen interconnection with the international financial market,” the bank said in an official statement on November 27.
Back in July, the Bank of China started testing an offline payment system which would work in integration with SIM cards. When enabled, this offline payment system will only require the users to bring their phones close to the sale terminals to initiate CBDC payments.
Around April 2022, China also made its CBDC trials available in 23 cities including Shanghai, Beijing, and Shenzhen. Residents in these cities were allowed, in fact encouraged, to pay for goods and services with the e-CNY.
“Standard Chartered eagerly anticipates broadening the use cases of digital renminbi, encompassing cross-border merchant payments, trade financing, and supply chain financing, to consistently address the requirements of both individual and corporate customers,” stated the bank.
Simultaneously, India, Japan, and the US, among other nations, are progressing in the advanced stages of their CBDC-related research and development initiatives. Their goal is to enhance options for financial settlements among the public.
