Reading 2 minutes Published Updated
French bank BNP Paribas is partnering with the Bank of China (BOC) to promote China’s digital currency, the digital yuan, to its corporate clients, according to the South China Morning Post.
The partnership will allow BNP Paribas China corporate customers to connect to the BOC system, allowing users to manage their digital yuan wallets by linking them to their bank accounts, track transactions and make payments using China’s digital currency through the e-CNY management system. The e-CNY governance system also promises to make it easier and easier for customers to use digital money for real-time transactions.
The e-CNY management system can promote “efficient, convenient and convenient operation [цифровых денег] in real time,” BNP shared, according to The South China Morning Post.
BNP Paribas China also plans to explore the use of China’s central bank digital currency (CBDC) in other areas such as smart contracts, supply chain finance, utilities and cross-border payments.
Related: North Carolina House of Representatives passes bill to ban CBDC payments to the state
To promote adoption of its CBDC, China has given away millions of dollars worth of digital yuan across the country during the Lunar New Year. It is reported that a number of cities have allocated more than 180 million yuan, which is a CBDC worth $26.5 million through programs such as subsidies and consumer coupons.
In April, local news reported that the Chinese city of Changshu notified all civil servants under its jurisdiction that they would be paid their full digital yuan wages starting in May 2023. The terms of the payment apply to all civil servants in the civil service and in other public institutions own units in the city.
Despite the Chinese government’s efforts to promote the digital yuan, Hong Kong residents have shown little enthusiasm for the government’s push to promote adoption of its CBDC. During the first four days of the hard launch of the yuan digital wallet, only 625 residents signed up, indicating a lukewarm response to the new digital currency offering.
