Digital Renminbi Surges in Popularity, Facilitating International Payments and Major Transactions
The digital renminbi, or e-CNY, is surging in popularity among both Chinese and foreign users, as reported by HSBC China. This digital currency, issued by the People's Bank of China, is now accessible for international payments and has been used in significant transactions.
One of the key uses of e-CNY is international payments. The mBridge project, a bridge between e-CNY and global payment systems, is currently being tested by the central banks of the United Arab Emirates and Thailand. It was officially launched in Hong Kong. This initiative aims to facilitate cross-border payments using digital currencies.
Since September 2023, foreigners can load e-CNY wallets with international credit cards, making it easier for them to access the Chinese payment system for online shopping. HSBC, the first foreign bank in China to link both personal and business accounts to e-CNY, has enabled this feature for its customers.
The digital renminbi has been used in notable transactions. In September 2023, a milestone was reached when one million barrels of oil were purchased on the Shanghai Petroleum and Natural Gas Exchange using e-CNY. Additionally, six bilingual educational institutions in major cities like Shanghai and Beijing have started using HSBC's e-CNY service.
The digital renminbi continues to gain traction, with international payments and cross-border transactions now possible. Its use in significant transactions, such as oil purchases and educational institution payments, signals its growing acceptance and potential in the global financial landscape.
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