The partnership will allow BNP Paribas China’s corporate clients to make payments utilizing the digital yuan through an e-CNY management system.
The French bank BNP Paribas is uniting with the Bank of China (BOC) to promote China’s digital currency, the digital yuan, to its corporate clients, the South China Morning Post reported.
The collaboration will enable BNP Paribas China’s corporate clients to link with the BOC system, permitting users to manage their digital yuan wallets by linking them to their bank accounts, track deals, and make payments utilizing China’s digital currency via an e-CNY management system. The management system similarly promises to make it simple and further convenient for clients to utilize digital cash for real-time transactions.
The digital yuan management network can facilitate “ efficient, real-time and convenient (digital cash) trial, ” BNP shared, according to The South China Morning Post.
BNP Paribas China similarly plans to research the usage of China’s central bank digital currency (CBDC) in different areas, similar as smart contracts, supply chain finance, utility, and cross-border payments.
Related: North Carolina House passes bill banning CBDC Payments to the State
To promote the adoption of its CBDC, China provided out millions of dollars value of digital yuan across the country during the Lunar New Year period. A number of cities reportedly gave away over 180 million yuan, adding up to the $26.5 million value of CBDCs in programs similar to subsidies and consumption coupons.
In April, local news told that the Chinese city of Changshu notified all civil servants in its jurisdiction that they would be paid their full salaries in digital yuan starting in May 2023. The payment terms refer to all civil servants in the public service and different state-owned units in the city.
Despite the Chinese government’s efforts to promote the digital yuan, Hong Kong residents haven't shown significant enthusiasm for the government’s drive to promote the adoption of its CBDC. During the initial four days of the hard launch of the digital yuan wallet, solely 625 residents signed up, pointing to a lukewarm response to the new digital currency offering.
(JUDITH BANNERMANQUIST, Cointelegraph, 2023)