China, which became one of the first countries 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 to join China’s CBDC pilot, which is now in an advanced stage. What this essentially means is that the Asian country’s Standard Chartered Bank will now give its users access to the digital version of the Chinese Yuan by integrating its platform with the dedicated Chinese app dedicated to its CBDC.
A CBDC or central bank digital currency is the blockchain representation of fiat currency. Transactions through CBDCs are expected to not only reduce dependence on paper notes but also keep transaction history transparent and tamper-proof. In addition to the digital yuan, the Chinese CBDC is also recognized as the e-CNY or the digital RMB (renminbi).
Now Standard Chartered has become one of the world’s largest multinational banks involved in 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.
In July, the Bank of China began testing an offline payment system that would work in integration with SIM cards. When enabled, this offline payment system only requires users to bring their phones near the sales terminals to initiate CBDC payments.
Around April 2022, China also made its CBDC trials available in 23 cities, including Shanghai, Beijing and Shenzhen. Residents of these cities were allowed, and even encouraged, to pay for goods and services with the e-CNY.
“Standard Chartered looks forward to continuously expanding the application scenarios of digital renminbi, including cross-border merchant payments, trade finance and supply chain finance, to continue meeting the needs of individual and corporate customers,” the bank further noted in her statement.
Meanwhile, India, Japan and the US are among other countries that are also in the advanced stages of their CBDC-related research and development initiatives. They are intended to diversify people’s choices in financial arrangements.