Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The French financial institution BNP Paribas is partnering with the Bank of China (BOC) to advance the digital yuan, China’s digital currency, among its corporate clientele, as reported by the South China Morning Post.
This collaboration will allow BNP Paribas China’s corporate customers to access the BOC system, enabling them to manage their digital yuan wallets by linking them to their bank accounts, monitor transactions, and execute payments using China’s digital currency through an e-CNY management system. The management system is designed to enhance the ease and convenience of utilizing digital cash for real-time transactions.
According to BNP, the digital yuan management system can support “efficient, real-time and convenient [digital cash] practice,” as noted by The South China Morning Post.
BNP Paribas China also intends to investigate the application of China’s central bank digital currency (CBDC) in various sectors, including smart contracts, supply chain finance, utilities, and cross-border payments.
Related Posts
Related: North Carolina House passes bill banning CBDC payments to the state
To encourage the uptake of its CBDC, China distributed millions of dollars worth of digital yuan nationwide during the Lunar New Year festivities. Several cities reportedly allocated over 180 million yuan, equivalent to $26.5 million in CBDCs, through initiatives such as subsidies and consumption vouchers.
In April, local reports indicated that the Chinese city of Changshu informed all civil servants within its jurisdiction that they would receive their full salaries in digital yuan starting in May 2023. This payment arrangement applies to all civil servants in the public sector and other state-owned entities in the city.
Despite the Chinese government’s initiatives to promote the digital yuan, residents of Hong Kong have displayed limited interest in the government’s efforts to encourage the adoption of its CBDC. In the initial four days following the hard launch of the digital yuan wallet, only 625 residents registered, reflecting a tepid response to the new digital currency offering.
Magazine: Are CBDCs kryptonite for crypto?
